Fundamental of Business

quantity demanded.

A demand curve shows the graphical relationship between price and:

as the price of bread increases .the quantity of bread demanded will decrease.

According to the law of demand, assuming other factors are held constant:

increase in the demand of the electronics today.

Complete the following sentence: If people think that the price of electronics will increase in the near future, that belief may cause a(n):

by constantly assessing the opportunity costs of our choices.

Due to limits on our time, money, and effort, we are best off when we allocate those things:

NOT - Expansion

During an economic ________, business is booming, prices are high, and it is difficult to hire new workers because virtually everyone who wants to work is already employed.

NOT - Rate of inflation

Each year it is good to measure the market value of all goods and services produced by an economy, known as:

the government decides what can be produced and what prices will be charged.

In a planned economy, government determines what can be produced and:

meet all of society wants

In a world of scarcity, we will never:

it allows workers to focus on a particular job and focus on the parts of the production process in which they have and advantage

One of the benefits of labor specialization is that:

the box of availability gizmos is often empty

The equilibrium price for Gizmos Puzzle Toys is $10, but Gizmos are currently priced at $12 throughout the market. In the typical store that sells Gizmos, we might expect:

macroeconomics.

The field of economics that looks at the economy as a whole and focuses on broad issues such as growth, unemployment, inflation, and trade balance is:

NOT - Recession

What is the term for an extended period of economic decline with no improving indicators?

the equilibrium price is lower than the current market price.

When a market is experiencing a surplus, or "excess supply":

amount that producers collectively make avaialble for sale.

When economists talk about supply, they are referring to a relationship between the price in a market and the:

quantity supplied

When economists talk about supply, they are referring to a relationship between the price in a market and the:

NOT - the law of supply

When higher prices result in higher quantity supplied, economists call this relationship: