When economists describe "a market, " they mean: A) A place where stocks and bonds are traded B) A communication network that allow individuals to keep in touch with each other C) A hypothetical place where the production of goods and services takes place D) A system that allows buyers and sellers to interact with one another In the labor markets, A) Job applicants are the "buyers" while employers are the "sellers" B) Job applicants are the "sellers" while employers are the "buyers" C) Job applicants and employers are both "sellers" D) Job applicants and employers are both "buyers" A higher price reduces the quantity demanded for a product because: A) The purchasing power of individuals increases B) The financial assets of individuals increase C) Individuals will buy more of the product and less of its substitutes D) Individuals can afford less of the product and will switch to substitutes Which statement best illustrates the concept of diminishing marginal utility? A) If the price of hamburger declines, there will be a change in consumer tastes in favor of hamburger B) A typical consumer will receive less satisfaction from consuming hamburgers than from consuming pork C) A typical consumer will receive less satisfaction from consuming the fourth hamburger per week than the third hamburger per week D) A decrease in the price of hamburger will cause consumers to buy more hamburger because they have, in effect, received an increase in income Which would be a likely cause of an increase in the demand for pizza? A) A reduced desire for take-out and fast-food dining B) A decrease in the price of hamburger sandwiches C) A decrease in the prices of cheese, pepperoni, and mushrooms D) A health report showing eating pizza reduces stress If product Y is an inferior good, a decrease in consumer incomes will: A) Make buyers want to buy less of Product Y B) Not affect the sales of product Y C) Shift the demand curve for product Y to the left D) Shift the demand curve for product Y to the right
