What information is provided by a demand curve? What variables are measured along the axes of the graph?
What will be an ideal response?
The demand curve is a graphical representation of a demand schedule. The price per unit is measured along the vertical axis and the number of units per period of time is measured along the horizontal axis. The units of the good are identical so that quality is held constant. The price is the relative price, so all other prices are held constant. The demand curve pictures the relationship between relative price and the quantity purchased.
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In broad terms the difference between microeconomics and macroeconomics is that
A) they use different sets of tools and ideas. B) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. C) macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. D) microeconomics studies the effects of government taxes on the national unemployment rate.
GDP does not directly include:
a. the value of final goods and services produced, but not sold, during a period. b. the value of services rendered during a period c. the value of intermediate goods sold during a period. d. any of the above.