Which of th e terms describes an economy in which prices form the basis for economic decisions?
market
What is the term for the act of buyers and sellers freely engaging in market transactions?
voluntary exchange
A product for which quantity changes very little when prices go up or down is said to be _____________________
supply inelastic.
What kind of shop does not require workers to join a union, but
allows
them to choose to do so?
modified union
What occurs when we lack the resources to produce the things
we want.
Scarcity
When a job is broken down into several, smaller tasks that are
performed by different workers, it is called _________________
division of labor.
What are expenses that increase as production grows?
variable costs
Which term means that stockh olders are not responsible for the debts of the corporation?
limited liability
If price changes have little effect on the quantity of a product demanded the product is said to have _________________
inelastic demand.
Which principle shows how additional satisfaction decreases as more units are consumed?
diminishing marginal utility