24 terms

Chapter 3

The goals of the market participants are the maximization of:
Satisfaction from purchases for consumers, profits for business, and society's general welfare for government.
People benefit by participating in the market because:
Market participation allows individuals to specialize and, ultimately, consume more.
Which of the following is a market transaction:
A college student purchases a laptop computer.
A factor market is any place where:
Land, Labor, oe Capital is bought.
International participants:
Participate in both American factor markets and American product markets.
A market in which final goods and services are exchanged is a:
Product market.
Which of the following statements about markets is true?
Every market transaction involved an exchange of dollars.
The term opportunity cost refers to:
Value of the best option given up when a good or service is produced..
The quality of a good a consumer is willing to buy depends on:
The price of a good, the consumer's income and the opportunity cost of purchasing the good.
Ceteris paribus, if the price of Belgian chocolate falls, then we will see:
An increase in the quantity demanded of Belgian chocolate.
Assume Pepsi and Dr. Pepper are substitutes. An increase in the price of one will result in the price of one will result in:
An increase in the demand for the other.
If there are only two airlines that fly between Dallas and New Orleans, what will happen in the market for one airline if the other one goes out of business:
The demand curve will shift to the right.
Peanut better and jelly are complements. A decrease in the price of one will result in:
An increase in the demand for the other.
Given a downward-sloping market demand curve for product X, if the price of X is reduced from $10 to $8, then, certeris paribus:
The quality demanded of X will increase.
Ceteris paribus, which of the following is most likely to cause an increase in the quality supplied of perfume?
An increase in the price of perfume.
A shift in supply is defined as a change in:
Supply because of a change in a non-price determinant.
The law of supply implies that:
Supply curves are an upward sloping to the right.
Ceteris paribus, the market supply curve of a particular product indicates for a given period the:
Total quantities that sellers are willing and able to offer for sale at alternative prices.
Ceteris paribus, if the subsidies given to corn syrup produces decrease, then we can expect:
A decrease in teh supply of corn syrup.
Both a demand schedule and a supply schedule for a good indicate for a given period of time at different prices, ceteris paribus:
The quantities of the good that market participants are willing and able to exchange.
The market mechanism is consistent with:
A trial and error processes.
The term market mechanism refers to:
The use of market prices and sales to determine resource allocation.
When a surplus exists for a product:
Producers reduce the level of output and reduce prices.
When a shortage exists:
Consumers bid up price.