Macroeconomics test 9/10

What is an example that would not be a market transaction?

payment made to a disaster victim

A market exists when:.

people exchange money for goods and services.

The market economy is often called the price system because:

prices provide information for both buyers and sellers.

College classes and college textbooks are: A)inferior goods. B)unrelated goods. C)complementary goods. D)substitute goods

C

Prices perform which of the following functions? A)signal entrepreneurs to enter or leave a market. B)give buyers an easy means of comparing goods that might substitute for each other. C)signal potential employees to enter or leave the labor market as a supplier for a particular job. D)All answer choices are correct

all of the above

Prices:

allow sellers to determine what goods to sell, help buyers find possible substitute goods, and contain information useful for all people involved in a transaction.

A market will:

always trend towards equilibrium.

The basic proposition of the law of demand is that:

as the price of a good rises, less of it is demanded.

A demand curve represents a(n):

indirect relationship between price and quantity demanded.

A(n) _____ is an institution that brings buyers and sellers together so they can interactand transact with each other.

market

When economists refer to a "Market Demand" curve, we know that it represents:

the horizontal summation of individual demand curves.

Demand" refers to:

the products buyers are willing and able to purchase at various prices in a given period of time.

The concept of demand is:

the quantities of a good or a service that people will buy at various price