Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.
a. income gap
b. market equilibrium
c. law of demand
d. price model
c. law of demand
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the law of demand.
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The decisions of firms and households are
A) coordinated by but not totally controlled by the government. B) made independently of one another. C) controlled by but not totally coordinated by the government. D) coordinated by markets. E) unexplainable by the circular flow model.
To decrease the money supply, the Fed would
What will be an ideal response?
If average total cost > average variable cost > price, a profit-maximizing firm in a perfectly competitive market should:
A. continue to produce its current output level. B. shut down in the short run. C. increase its output level to minimize its loss. D. None of these
Overall income disparity can be measured by the
A. difference between GDP and GNI. B. growth rate in real GDP. C. Gini Index. D. population growth rate.