Part 1: Twelve Key Elements of Exam Excellence: Study Guides and Instructor Notes Included

both the buyer and seller Economic progress reflects that people are achieving higher income levels and living standards Voluntary trade promotes economic progress because it makes larger outputs possible as a result of specialization. Higher transaction costs will tend to reduce the number of mutually beneficial exchanges Middlemen Increase transaction goods If the Internet helps buyers learn about the availability of products and find potential sellers more quickly, the gains from trade will increase The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the demand curve If equilibrium is present in a market, quantity demanded equals quantity supplied When individuals increase their personal wealth through production and exchange, they increase the wealth of others. The pursuit of profit will encourage firms to produce efficiently and keep their costs low, encourage firms to produce goods and services that consumers value highly relative to costs, and discover and develop better products and lower-cost production methods Economic progress comes primarily through