Which of the Following Statements Describes the Force That Drives

question 60

Multiple Choice

Which of the following statements describes the force that drives the distribution of resources (goods and services,labor,and money) in a free-enterprise economy?

• A)Prices for goods and services vary according to the changes in supply and demand.
• B)Supply and demand curves intersect at the point where supply and demand are not equal.
• C)Changing the price of a product does not alter the supply curve.
• D)The price at which the number of products that businesses are willing to supply is inversely proportional to the amount of products that consumers are willing to buy at a specific point in time.
• E)Businesses are willing to supply more of a good or service at higher prices because the potential for profits is higher.

Appreciate the historical context and impact of significant economic events like the Great Depression and the 2008-2009 recession.

Grasp the concept and implications of business cycles on the economy.

Comprehend Keynesian economic theories regarding aggregate demand and unemployment.

Examine the aggregate demand and aggregate supply model's applications and limitations in explaining economic phenomena.

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Definitions:

Demotion

The act of lowering an employee's rank or position, usually as a disciplinary measure or due to organizational restructuring.

Discharge

The termination of an employee's job position by the employer, often for cause such as misconduct or poor performance.

Aggregate Welfare

The total level of well-being or economic prosperity of a community, region, or country, considering all individuals and factors collectively.

Top-Down Organizations

Organizations structured so that decision-making and directives flow from the upper levels of management down to the lower levels.