ECON CH 3 SB

Which of the following are characteristics of a competitive market? Multiple select question. Quantity-setter A standardized good Price-taker Advanced technology Unique product features Price-maker No transaction costs Full information

A standardized good Price-taker No transaction costs Full information

_______ describes how much of something people want to buy under certain circumstances.

Demand

_________ (one word) allow for constant communication between buyers and producers, using prices as a signal.

Markets

Full information, standardized goods, and no transaction costs are characteristics of Multiple choice question. a monopolistic market an oligopolistic market an imperfect market a competitive market

a competitive market

Full information, standardized goods, and no transaction costs are characteristics of Multiple choice question. an oligopolistic market an imperfect market a monopolistic market a competitive market

a competitive market

A table showing the quantities of a particular good or service that consumers are willing and able to purchase at various prices is Multiple choice question. a demand schedule. a demand curve. usually the same as supply. usually shown for a given price.

a demand schedule.

In economics, buyers and sellers who trade a particular good or service are referred to as Multiple choice question. a market equilibrium supply demand

a market

A good for which any two units have the same features and are interchangeable is called Multiple choice question. a Giffen good a standardized good an inferior good a competitive good

a standardized good

Market demand is determined by Multiple choice question. adding quantity demanded and quantity supplied adding all of the individual production possibilities frontiers adding up all of the individual demand curves subtracting quantity demanded from quantity supplied.

adding up all of the individual demand curves

A price taker refers to a buyer or seller who Multiple choice question. cannot affect the market price through consumption or production decisions. determines the price that sellers charge and the price that buyers pay. can affect the market price through consumption or production decisions. sets the market price and corresponding equilibrium using a command economy.

cannot affect the market price through consumption or production decisions.

Markets allow buyers and sellers to

communicate using price as a signal.

A perfectly __________ market is one in which well-informed, price-taking buyers and sellers easily trade a standardized good or service.

competitive

The nonprice determinants of demand can be divided into categories including: Multiple select question. consumer preferences consumers' incomes. expectations of future prices. the number of buyers in the market. the number of sellers in the market. changes in the price of a good. technological changes. the prices of related goods.

consumer preferences consumers' incomes. expectations of future prices. the number of buyers in the market. the prices of related goods.

The personal likes and dislikes that make buyers more or less inclined to purchase a good are Multiple choice question. always constant. producer preferences. consumer preferences. always changing.

consumer preferences.

A demand schedule shows the quantities of a particular good or service that __________ are willing and able to purchase at various prices.

consumers/buyers

For an inferior good, if consumers' incomes increase, Multiple choice question. supply will shift left. demand will shift left. demand will shift right. supply will shift right.

demand will shift left (decrease).

If the number of buyers falls, Multiple choice question. supply will shift right. demand will shift left. supply will shift left. demand will shift right.

demand will shift left.

Consumer preferences and the expectations of future prices are considered non-price _________ of demand.

determinants or factors

Demand describes Multiple choice question. how much of something people want and are able to buy under certain circumstances. how much of something people need to buy under certain circumstances. how much of something people want and are able to sell under certain circumstances. how much of something people need to sell under certain circumstances.

how much of something people want and are able to buy under certain circumstances.

According to the law of demand, price and quantity are ____________ related. (Enter one word in the blank.)

inversely or negatively

An economy organized by private individuals making decisions, rather than a centralized planning authority is referred to as a free ____________ economy.

market

The term ____________ (one word) refers to the buyers and sellers who trade a particular good or service.

market

If we add up all of the individual choices of consumers, we get overall Multiple choice question. quantity demanded. equilibrium quantity. market demand. market supply.

market demand

If we add up all of the individual choices of consumers, we get overall Multiple choice question. market demand. quantity demanded. equilibrium quantity. market supply.

market demand.

A market economy is

organized by private decision-making individuals.

The amount of a particular good that buyers in a market will purchase at a given price during a specified period is Multiple choice question. supply. quantity demanded. quantity supplied. demand.

quantity demanded

If one of the non-price factors that determines demand changes, the demand curve will _________ (Enter one word in the blank).

shift or move

If the demand curve shifts, it must be the case that Multiple choice question. the price has fallen. something, in addition to the price, changed. something other than the price changed. the price and quantity stayed the same.

something other than the price changed.

A _________ good is a good for which any two units have the same features and are interchangeable.

standardized

All else equal, if the demand for good B increases when the price of good A increases, the two goods are ________ (one word).

substitutes

When no buyer or seller can affect the market price, the buyer or seller is called a price ____________.

taker

Quantity demanded refers to Multiple choice question. -the amount of a particular good that buyers will purchase at a given price during a specified period -the amount of a particular good that sellers will sell at a given price during a specified period -the amount of a particular good that sellers will sell over a range of relevant prices during a specified period -the amount of a particular good that buyers will purchase over a range of relevant prices during a specified period

the amount of a particular good that buyers will purchase at a given price during a specified period.

The inverse relationship between price and quantity demanded is referred to as Multiple choice question. common sense. the law of demand. the expected relationship. the law of supply.

the law of demand

Two goods are substitutes when Multiple choice question. they serve similar purposes. they are used together. consumers like both goods. their prices are similar.

the serve similar purposes.

In a competitive market, _____________ easily trade a standardized product. -well-informed, price-making buyers and sellers -well-informed, price-taking buyers and sellers -a large number of buyers and a single seller -a single buyer and all the sellers

well-informed, price-taking buyers and sellers