The Usefulness and Relative Simplicity of the Supply and Demand

question 23

Multiple Choice

The usefulness and relative simplicity of the supply and demand model is often used

• A)because nearly every major industry in the U.S. is governed by perfect competition.
• B)because nearly every major industry in the U.S. is governed by monopoly.
• C)even though, strictly speaking, few industries in the U.S. are governed by perfect competition.
• D)even though it has no connection to economic reality.

Grasp the distinction between microeconomics and macroeconomics, including their areas of focus and impact.

Recognize the role and impact of government fiscal policies within macroeconomics.

Differentiate among the various types of market competition.

Identify the effects of price changes on consumer behavior and market outcomes.

---

Definitions:

Federal Employees

Workers who are employed by the federal government of a country, undertaking tasks and responsibilities dictated by governmental agencies.

Independent Regulatory Agency

A federal agency created to enforce and regulate laws in specific sectors, operating independently from the executive branch.

Executive Branch

The branch of government responsible for implementing and enforcing laws, headed by the president and including the cabinet and other officials.

Cabinet Department

A major administrative unit in the executive branch of the federal government, headed by a secretary who is a member of the president's cabinet.