Production, consumption and leisure activities
Production and consumption activities
Consumption and leisure activities
The law of increasing opportunity costs
The scarcity of resources relative to human wants
How to get government to operate efficiently
How to create employment for everyone
Land, labor, money, and capital
Land, labor, money, and inputs
Land and capital
Land, labor, campital, and entrepreneurship
The money needed to start a new business
The costs of operating a business
Shares of stock issued by businesses
Final goods that are used to produce other goods and services
Best to use society's scarce resources
Society spends the income of individual
Society purchases resources, given its macroeconomic goals
Individual market participants decide what to produce given fixed resource constraints.
Goods or services that are forgone in order to obtain something else.
Dollar prices paid for final goods and services.
Dollar cost of producing a particular product
Difference between wholesale and retail prices
Combinations of goods and services an economy is actually producting
Maximum combinations of goods and services an economy can produce given available resources and technology
Average combinations of goods and services an economy can produce given its available resources and technology.
Maximum combinations of goods and services an economy can produce given unlimited resources
Producing more of one good implies a reduction in the potential production of another good.
It is always possible to produce more of one good
It is always possible to produce more of one good without producing less of another
It is never possible to produce zero output
More of one good implies producting more of another good
More of one good implies producting less of another good
Less of one good implies producting less of another good
More of one good implies shifting the curve toward the origin
Maximum resources used in producing a given output of level
Maximum output of a good produced from the available resources
Maximum ouput of a good produced if all resources are devoted to its production
There is full employment of resources
It is operating efficiently
It can produce more of one good without giving up some of another good
There are not enough resources available to produce more output
A shift outward of the production-possibilities curve
A shift inward of the production-possibilities curve
A movement from inside the production-possibilities curve to a point on the production-possibilities curve
A movement from the production-possibilities curve to a point inside the production-possibilities curve
An increase in population
A decrease in the size of the labor force
An increase in knowledge
A technologocial advance
The production possibilities curve
The least-cost method of production
The method of production which uses the lease amount of labor
Need the goods and services the most
Have the most political power
Want the goods and services the most
Are willing to pay the highest price
The use of market prices and sales to signal desired output
The use of market signals and government directives to select economic outcomes
The process by which the production-possibilities curve shifts inward
Price regulation by government
Intervention in the economy by the government bureaucrats we do not see and over whom we have no control
Undiscovered natural resources
The allocation of resources by market forces
The person who has the responsibility to coordinate all the markets in a market economy
Government directives only
Price signals and sales in markets only
Both government directives, and price signals and sales in markets
The invisible hand only
The market mechanism
Laws and regulations
Laissez-faire price policies
The overall economy
All of the above
Full employment, price stability, growth in output
The welfare of individual consumers and business firms
Production, pricing, and purchasing
Land, labor and capital
Point A to point B
Point A to point C
Point B to point C
Point C to point F
This economy will never be able to reach point E
Point E is attainable if this economy uses more of its available resources
Point E is attainable if this economy becomes more efficient
Point E is attainable only if more resources become available or technological advances are made.
Point D only
Point G only
Point J only
Points D, G, and J
OA units of food
KL units of clothing
AB units of food
OL units of clothing
Measured in physical units
A measure of the economic growth rate
A per capita measure
The total vaue of all final goods ans services produced within a nation's borders in a given year.
The sum of consumer goods, investment goods, government services, and net exports
A dollar measure of the economics growth rateof a country
The value of the factors of production used to produce output in a country
A measure of output divided by the total population
Per capita GDP
$20,000 per year
$5,000 per year
$2 per day
$0.50 per day
The population rises
The rate of economic growth increases
The is an increase in the rate at which the economy's labor force grows
The rate of economic growth exceeds the rate of population growth
A market signal
Higher trade barriers
The growing share of services in U.S. production
The declining popularity of food products
The factors of production
Consumer goods and services
State and local government purchases
Federal government expenditures on income transfers
The population of a country must grow slowly
The level of GDP must increase even if the population growth is negative
A country must devote some of its scarce resources to investment
A country should export more goods than it imports
Included as part of consumption expenditures
Included as part of investment expenditures
Included as part of government expenditures
Not included in GDP
A payment to an individual in exchange for newly produced goods or services
A payment to an individual for which no current goods or services are exchanged
A payment to an individual in return for current labor provided
Federal income taxes because money is taken from individuals and paid to the government
The sum of exports and imports
Equivalent to the value of exports minus the value of imports
Positive if the U.S. economy imports more than it exports
Positive if foreigners consume less of U.S. output thn U.S. residents consume of foreign output.
Lower opportunity cost than your trading partner
Higher opportunity cost than your trading partner
Lower absolute cost of production than your trading partner
Higher absolute cost than your trading partner
Only those goods that are produced and then used to produce other goods and services
Any resource used to produce goods and services
Factories and machinery only
Shift the curve inward
Result in a movement from inside the curve toa point on the curve
Shift the curve outward
Result in a movement along the curve
Output per unit of input
Output per dollar of input
Input per unit of output
Input per dollar of output
Rises when the value of output rises relative to the cost of inputs
Falls when the value of output rises relative to the cost of inputs
Rises when the ratio of output to input increases
Falls when factors of production cost more
The decreasing investment in human capital
Increases in productivity and increases in total output.
Increases in productivity and decreases in total output.
Decreases in productivity and increases in total output.
Decreases in productivity and decreases in total output.
A decrease in factor mobility.
A decrease in the number of government sponsored student loans.
An increase in foreign investment in the U.S.
A decrease in tax credits for research and development.
Black-market economic activity.
The impact on markets of imported goods.
The costs and benefits of a market activity bome by a third party.
The inequitable distribution of income.
The government has failed to establish rules for contracts.
Most businesses are more concerned about profits than how the environment is affected.
The government has failed to enforce contract provisions.
The government is concerned about broad economic welfare.
Prices tend to be higher.
Quality tends to be higher.
Production tends to be higher.
Society is always better off
The production-possibilities curve always shifts outward
Society may be worse off
Society is always worse off
A stock increases in value over the thirty years that is owned
A college student purchases a laptop computer.
Weather destroys a farmer‘s crops leaving the farmer unable to buy groceries.
A radio station changes its programming from classical to rock.
Finished goods are bought and sold.
Land, labor, or capital is bought and sold.
Finished services are bought and sold.
Factories are bought and sold.
Take no part in American markets.
Participate only in American product markets.
Participate only in American factor markets.
Participate in both American factor markets and American product markets.
Labor, raw materials, capital, and money.
Rent, wages, interest, and profit.
Production, distribution, pricing, and marketing.
Land, labor, capital, and entrepreneurship.
Every market has a physical location.
Every market has either a demand side or a supply side but not both.
Every market transaction involves an exchange of dollars.
Factors of production are traded in every market.
Value of all the options given up when a good or service is produced.
Financial costs of all the factors of production used to produce a good or service.
Amount of resources used to produce a good or service.
Value of the best option given up when a good or service is produced.
The price of a good.
The consumers income and the opportunity cost of purchasing the good.
The price of the good and the opportunity cost of purchasing the good.
The price of the good, the consumer's income and the opportunity cost of purchasing the good.
Does not change since the demand curve does not change.
Decreases as long as supply also falls.
An increase in the demand for Belgian chocolate.
A decrease in the demand for Belgian chocolate.
An increase in the quantity demanded of Belgian chocolate.
A decrease in the quantity demanded of Belgian chocolate.
The price of substitutes.
A decrease in the price of automobiles.
The new models are perceived as ugly compared with old models.
An increase in consumers' income.
Consumers‘ expectations that the price of automobiles will be higher next year.
A decrease in demand for the other.
A decrease in the quantity demanded of the other.
An increase in the demand for the other.
An increase in the quantity demanded ofthe other.
The demand curve will shift to the right.
The demand curve will shift to the left.
There will be a movement to the right along the initial demand curve.
There will be a movement to the left along the initial demand curve.
A decrease in the demand for the other.
A decrease in the quantity demanded of the other.
An increase in the demand for the other.
An increase in the quantity demanded of the other.
Demand for X will increase.
Demand for X will decrease.
The quantity demanded of X will increase.
The quantity demanded of X will decrease.
An improvement in perfume-making technology.
An increase in the salaries paid to perfume makers.
An increase in the price of perfume.
An increase in the number of sellers of perfume.
Quantity supplied because of a change in price.
Supply because of a change in a non-price determinant.
Supply curves are flat.
Supply curves are upward-sloping to the right.
Supply curves are downward—sloping to the right.
A change in a determinant of demand shihs the supply curve.
Total quantities that are actually sold.
Total quantities that buyers are willing and able to purchase at alternative prices.
Total quantities that sellers are willing and able to offer for sale at altemative prices.
Specific quantities that an individual seller will make available at a given price.
A decrease in the demand for com syrup.
A decrease in the supply of corn syrup.
An increase in the demand for com syrup.
An increase in the supply of corn syrup.
The motives for exchanging money for various quantities of the good.
The actual quantities of the good exchanged for money.
That supply creates its own demand.
The quantities of the good that market participants are willing and able to exchange.
A trial and error process.
Both govemment control and committee determination.
The use of market prices and sales to determine resource allocation.
The establishment of a ceiling price in a market.
Supply and demand curves.
Govemment laws and regulations conceming how the market should operate.
Producers increase supply.
Consumers increase demand.
Govermnent purchases decrease.
Producers reduce the level of output and reduce price.