What is the relationship between the price of an item and the quantity demanded ?

What is the relationship between the price of an item and the quantity demanded?

Which of the following is injected into the circular flow in the expanded circular-flow model? a. the value of imports b. government transfer payments c. taxes d. private savings e. factor payments

A firm that is the sole seller of a product without close substitutes is

a. perfectly competitive

b. monopolistically competitive

c. a monopolist

d. an oligopolist

If supply increases, does the supply curve shift to the right or to the left?

Explain what happens to a given supply curve as a result of each of the following: a. Resource prices fall. b. Technology advances. c. A quota on importing a good is repealed. d. A tax on producing a good is repealed.

List the four factors that determine the elasticity of demand. For each factor, describe how the factor affects the elasticity of demand for a good (that is, explain whether it causes demand to be more elastic or more inelastic). Factor: _________ Description: __________.

List and explain the four determinants of the price elasticity of demand discussed in the chapter.

What factors, excluding price, affect demand?

How does the total expenditures test help determine demand elasticity ?

Explain why an economy's income must equal its expenditure.

Explain why an economy's income must equal its expenditure .

What is the GDP deflator, and how is it calculated?

If all quantities produced rise by 10 percent and all prices fall by 10 percent, which of the following occurs?

a. Real GDP rises by 10 percent, while nominal GDP falls by 10 percent.

b. Real GDP rises by 10 percent, while nominal GDP is unchanged.

c. Real GDP is unchanged, while nominal GDP rises by 10 percent.

d. Real GDP is unchanged, while nominal GDP falls by 10 percent.