Economics for Thanksgiving

An increase in government regulations will shift a demand curve to the right

What direction does the supply curve slope?

What happens to the opportunity cost of spending money when bank interest rates increase?

Which curve shows how much of a product a consumer will buy at a given price?

Collusion is an illegal agreement among producers to reduce competition.

Hayek believed that the free market would eventually reach equilibrium without government

Keynes believed that the government should borrow money to jump-start a slow economy

Competition is not influenced by the number of firms present

Buying stock is the riskiest of all investments

Inflation reduces the value of money held by savers

A wise investment strategy includes diversification

The slope of a supply curve is negative.

Past performance is no guarantee of future results in the stock market

Scarcity is having seemingly unlimited human wants in a world of limited resources.

What direction does the demand curve slope?

As the price increases, what happens to the quantity demanded of a product?

A price ceiling is the lowest legal price that can be paid for a product.

Pure competition = a market that has a broad range of competitors selling similar products

A supply curve shows the relationship between the price and the amount consumers can purchase.

Why was the Thanksgiving meal so expensive?