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).

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 ...

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