Eco 2023

Scarcity - Answer Stuff is limited. Choice - Answer One alternative is selected over another. Opportunity Cost - Answer The value of the best thing given up. Positive economics - Answer The way the world is Normative economics - Answer The way the world ought to be Benefits of trade - Answer - Increased variety of goods - Increased competition - Technology transfer - More efficient large-scale production Production Possibility Curve - Answer A curve depi...

a change in the quantity demanded - Answer a movement along the current demand curve a change in the quantity supplied - Answer a change in the specific quantity of a good that sellers are willing and able to sell. a change in demand - Answer number of buyers, change in trends/fads, change in expectation of future price A change is supply - Answer when the suppliers of a given good or service have altered production or output. Factors of a change in supply - Answer new...

Making optimal decisions "at the margin" requires A. making decisions according to one's whims and fancies. B. making consistently irrational decisions. C. weighing the costs and benefits of a decision before deciding if it should be pursued. D. making borderline decisions. - Answer C. weighing the costs and benefits of a decision before deciding if it should be pursued. Microeconomics is the study of A. how households and firms make choices. B. the economy as a ...

A basic characteristic of the short run for both a perfectly competitive firm and a monopolist is that: A. the firm does not have sufficient time to cut its rate of output to zero B. the firm does not have sufficient time to vary the level of any of the inputs used in the production process C. there are barriers to entry that prevent new firms from entering the industry to compete for customers D. the firm does not have sufficient time to vary the level of all of the inputs used ...

Consumer Choice - Answer How buyers decide to spend their money What are some fundamentals of consumer choice - Answer 1. Limited income necessitates choice 2. Consumers are rational 3. One good can be substituted for another 4. Consumers must make decision without perfect information 5. The law of diminishing marginal utility applies to consumption Marginal Utility - Answer The benefit derived from consuming an additional unit of a good Law of Diminishing Marginal Utility ...

The graph below depicts a profit-seeking firm: If the firm wants to maximize profits (or minimize losses), which of the following is correct? a. this is a price searcher that will produce in the short run but shut down in the long run b. this is a price taker that will produce in the short run but shut down in the long run c. this is a price searcher that will produce in the short run and the long run d. this is a price searcher that will shut down in the short run and the long run - Answer...