Answer the following questions. True or False
1. Withdrawals include investment, government expenditures, and exports.
2. If the price in a market is increased below that at the midpoint along the demand curve, total revenue to the firm will decrease.
3. Decisions made by individuals as to what and how much of each other productive resources to supply and of what goods and services to buy is more characteristic of a market economy than a command economy such as the former Soviet Union's Communist economy.
4. The study of recessions and inflation is considered to be a topic in microeconomics rather than macroeconomics.
5. In a supply and demand graph for a market, the vertical axis or Y axis measures the price and the horizontal or x-axis measures the quantity demanded or supplied.
6. Withdrawals or leakages in the circular flow of economic activity include investment, government purchases of goods and services, and exports.
7. The law of demand results in nearly all demand curve graphically sloping downward into the right.
8. If a price of a good is $10 per unit and that causes the market for the good to have a surplus, scarcity does not exist in that market.
9. A point inside the production possibility curve / Frontier (closer to the origin) represents the efficient use of a country's productive resources.
10. So long as there is some opportunity costs associated with obtaining a good or service, no matter the price, scarcity is present.
Answer the following questions. True or False
1. Withdrawals include investment, government expenditures, and exports.
2. If the price in a market is increased below that at the midpoint along the demand curve, total revenue to the firm will decrease.
3. Decisions made by individuals as to what and how much of each other productive resources to supply and of what goods and services to buy is more characteristic of a market economy than a command economy such as the former Soviet Union's Communist economy.
4. The study of recessions and inflation is considered to be a topic in microeconomics rather than macroeconomics.
5. In a supply and demand graph for a market, the vertical axis or Y axis measures the price and the horizontal or x-axis measures the quantity demanded or supplied.
6. Withdrawals or leakages in the circular flow of economic activity include investment, government purchases of goods and services, and exports.
7. The law of demand results in nearly all demand curve graphically sloping downward into the right.
8. If a price of a good is $10 per unit and that causes the market for the good to have a surplus, scarcity does not exist in that market.
9. A point inside the production possibility curve / Frontier (closer to the origin) represents the efficient use of a country's productive resources.
10. So long as there is some opportunity costs associated with obtaining a good or service, no matter the price, scarcity is present.
