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