Principles of Economics Study guides, Class notes & Summaries

SOLUTIONS MANUAL for Principles of Economics, 13th Edition by Karl Case, Ray Fair & Sharon Oster. ISBN 4711. (Complete Download).

TEST BANK for Principles of Economics, 13th Edition by Karl Case, Ray Fair & Sharon Oster. ISBN 4711. (Complete Download).

Solutions Manual for Principles of Economics 7th Edition by Gregory Mankiw

Scarcity - A situation in which unlimited wants exceed the limited resources available to fulfill those wants Production Possibilities Frontier (PPF) - A curve showing the maximum attainable combinations of two goods that can be produced with available resources and current technology

allocative efficiency - when the mix of goods produced represents the mix that society most desires budget constraint - all possible consumption combinations of goods that someone can afford, given the prices of goods, when all income is spent; the boundary of the opportunity set

circular flow diagram - visual model of economy that shows how money flows through markets among firms and households factors of production - inputs such as labor, land, and captial

Economics - the study of how humans make decisions in the face of scarcity Scarcity - human wants for goods, services and resources exceed what is available

Scarcity - the limited nature of society's resources Economics - the study of how society manages its scarce resources

ways to compute GDP Expenditure Approach -Add the amount of money spent by buyers of final goods and services -avoid double counting -do not count intermediate goods

Principle 1 - People face trade offs -Trade-offs are losing one quality or aspect of something in return for gaining another aspect or quality (slideshow, slide 10) Principle 2 - The cost of something is what you give up to get it -Based on the idea that nothing is free -People make decisions based on cost and benefit

division of labor - the way in which the work required to produce a good or service is divided into tasks performed by different workers economics - the study of how humans make choices under conditions of scarcity

the limited nature of society's resources - the study of how society manages its scarce resources - the property of society getting the most it can from its scarce resources