Principles of Economics - Exam Success Simplified: Comprehensive Guides for Testing Exams

How can the available supply of natural resources be increased? Discovering new ways to extract resources Correct! The discovery of different ways to extract natural resources can make them more available. A ski resort sells tickets online at $70 per ticket. The resort is not selling many tickets, so it offers a two-for-one opportunity. Which economic principle is being used? People respond to incentives. Correct! The incentive of a sale or coupon changed the cost from $70 to $35, making the ski trip more affordable and desirable. This incentive is what likely changed buyers' behaviors. What are the characteristics of the production possibility frontier graph? Trade-offs in choices and downward sloping Correct! The graph of the production possibility frontier reflects trade-offs in choices and is downward sloping. How is scarcity represented on the production possibility frontier? By there being attainable and unattainable points Correct! The production possibility frontier depicts the impact of scarcity by providing a clear mark between the set of attainable and unattainable points. The government imposes new safety regulations on the production of gas stoves. What will happen in the market for gas stoves? Supply decreases. Correct! New government regulations on producers will make it more expensive to produce gas stoves and will decrease supply. The price of steel has increased by 5%, which leads to an increase in quantity supplied by 8%. Which outcome can be concluded from the demand and supply of steel?