Microeconomics milestone review (NMHS)

Business org: This is where two or more owners share responsibility and decision making.

this is the reliance on one another to provide the goods & services that people consume.

This is where households supply labor and are paid wages and salaries

This is the highest legal ceiling...set by govt. Legal price that can be legally charge

What can make a supply curve shift?

Market structure: few companies, some price control. Product has some differences. ex. cars

This is where households purchase the productive output of businesses

This group buys factors of production and pay households income

This collect taxes, in order to spend money for society and sets fiscal policy.

Business org: This is a one owner, receives all the profits in complete control of business

This is movement along a supply curve, only by a change in a good's price

Market structure: Many companies, little $ control, products have some differences. ex. jeans

This is where businesses sell products or services to households

The way consumers think about the future affects what and how much they will demand.

Business org: Owned by shareholders (stock owners). Sell stocks and bonds to get money

Market Structures: Many suppliers (companies), Same product. No price control.

This is the minimum price, set by the government to pay for a good/service Ex, minimum wage!

States that consumers buy more of a good when its price decreases and less when price goes up

Households sell factors of production to businesses, what is this called....

A graphical representation fo the law of demand. It slopes downward.

Movement along the a demand curve, caused by a change in a price of a good

This group sells factors of production and buys goods from businesses

The amount of a product that would be offered for sale at all possible prices.

What can make a demand curve shift?

A set of arrangements through which buyers and sellers exchange at mutually agreeable terms.

When demand and supply point intersect in the same point, we have reached...

Market Structure: One company, complete control over price, no alternates!