they are necessarily inferior goods.

they are consumed independently.

a decrease in the price of one will increase the demand for the other.

an increase in the price of one will increase the demand for the other.

inverse, direct

inverse, inverse

 direct, inverse

direct, direct

the larger the number of buyers in a market, the lower will be product

price.

consumers will buy more of a product at high prices than at low prices.

price and quantity demanded are inversely related.

price and quantity demanded are directly related.

is an institution that brings together buyers and sellers.

entails the exchange of goods, but not services.

reflects upsloping demand and downsloping supply curves.

always requires face-to-face contact between buyer and seller.

The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest.

The non-substitutability of resources creates a conflict between private and public interests and calls for government intervention.

The market system is the best system for overcoming the scarce resources-unlimited wants problem.

Central direction by the government will improve resource allocation in a capitalistic economy.

encourages innovation because successful innovators are rewarded with economic profits.

discourages innovation because it is difficult to acquire additional capital in the form of new machinery and equipment.

encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques.

discourages innovation because firms want to get all the profits possible from existing machinery and equipment.

competition in product and resource markets.

private property.

freedom of enterprise.

government ownership of major industries.

money is not used, whereas it is in a market system.

the division of output is decided by central (government) planning rather than by individuals operating freely through markets.

all economic decisions are made by the government, whereas there is no government in a market system.

scarcity does not exist, whereas it does in a market system.

Microeconomics focuses on industries or businesses in the economy; macroeconomics examines the economy as a whole.

Topics in microeconomics have public policy implications; topics in macroeconomics do not.

Every topic in economics is either a microeconomic or a macroeconomic issue; a topic cannot be both.

Macroeconomics focuses on specific decision-making units of the economy; microeconomics examines the economy as a whole.