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Cards In This Set
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Consumer sovereignty refers to the
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Idea that the decisions of producers and resource suppliers with respect
to the kinds and amounts of goods produced must be appropriate to
consumer demands.
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The dollar votes of consumers ultimately determine the composition of
output and the allocation of resources in a market economy. this
statement best describes the concept of:
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Consumer sovereignty.
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Which of the following best describes the invisible-hand concept?
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The
desires of resource suppliers and producers to further their own
self-interest will automatically further the public interest.
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Two major virtues of the market system are that it:
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Allocates resources efficiently and allows economic freedom.
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If products were in short or surplus supply in the soviet union
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Producers would not react because no price or profit signals occurred.
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The simple circular flow model shows that:
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Households are on the selling side of the resource market and on the buying side of the product market.
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The two basic markets shown by the simple circular flow model are:
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Product and resource.
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In the simple circular flow model:
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Businesses are sellers of final products.
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 Refer to the above diagram. flow (1) represents: |
Wage, rent, interest, and profit income.
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Refer to the above diagram. flow (2) represents
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Land, labor, capital, and entrepreneurial ability.
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In terms of the circular flow diagram, households make expenditures in
the _____ market and receive income through the _____ market.
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Product; resource
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In terms of the circular flow diagram, businesses obtain revenue through
the _____ market and make expenditures in the _____ market.
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Product; resource
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In the circular flow model:
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Households sell resources to firms
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(consider this) in 1975 mcdonald's introduced its egg mcmuffin breakfast
sandwich, which remains popular and profitable today. this longevity
illustrates the idea of:
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Consumer sovereignty.
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(last word) according to economist donald boudreaux, the world's tens of
billions of individual resources get arranged productively:
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Because private property encourages people to consider the alternative
uses of their resources and select those that provide the most rewards
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