Deck 4: 0: Sec 40 Mc the Market Forces of Supply and Demand

Question 1

The two words most often used by economists are

A)prices and quantities.
B)resources and allocation.
C)supply and demand.
D)efficiency and equity.

Answer 1

C

Question 2

In a market economy,supply and demand are important because they

A)are direct policy tools used by government agencies to regulate the economy.
B)illustrate when an market is in equilibrium,but they are not helpful when a market is out of equilibrium.
C)can be used to predict the impact on the economy of various events and policies.
D)All of the above are correct.

Answer 2

B

Question 3

The two words economists use most often are

A)inflation and trade.
B)supply and demand.
C)competition and prices.
D)markets and equilibrium.

Answer 3

D