A#12 Supply & Demand

Benchmark 4-A:

analyze the ways individuals, households, businesses, governments and societies make decisions, are influenced by incentives (economic and intrinsic) and, the availability and use of scarce resources, and that their choices involve costs and varying ways of allocating:

#12 Standards with Test Item Specifications:

Understand the basis of supply and demand and marginal productivity.

Sample Question:

Which statement is true about the law of demand?

A. The law of demand is equal to the law of supply.

B. The law of demand does not correlate price and demand.

C. There is a direct relationship between price and supply.

D. There is an inverse relationship between price and demand. *

Marginal Productivity Change in output that results from changing the labor input by one unit, all other factors remaining constant.