Economics Midterm

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In the circular flow model, businesses sell products and buy resources Which is a normative statement? The unemployment rate of 6.8 percent is too high. The market system is a method of communicating and coordinating economic decisions Property rights encourage investment, innovation, exchange, maintenance of property, and economic growth. True In a market system, the government owns most of the property resources (land and capital). False An \"innovator\" is defined as an entrepreneur who introduces new products on the market or employs a new method to produce a product The two kinds of markets found in the circular flow model are product and resource markets A positive statement is a statement of opinion. False

The factors of production are land, labor, capital, and entrepreneurial ability. True Macroeconomic analysis is concerned with the economic activity of specific firms and industries. False If the price of a product increases, we can expect: quantity supplied to increase The institution which coordinates actions of buyers and sellers to establish prices for goods and services is known as: a market In a competitive market, if the existing price is below the equilibrium price, market forces will drive the price: up and quanity supplied up Which of the following is a determinant of supply? technology. The law of demand is illustrated by a demand curve that is: downward sloping The Law of Supply is illustrated by a supply curve that is: upward sloping If a change in tastes is in favor of a commodity, that will mean a: shift in the whole demand curve to the right When a specific demand schedule is graphed, the result is a: demand curve. When one speaks of \"demand\" in a particular market, this refers to: the whole demand curve A market demand schedule for a product indicates that: there is an inverse relationship between price and quanity demanded .Listed in descending order of relative size, Federal tax revenue: Personal Income tax, Payroll taxes, and...
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