Trade can make everyone better off
People respond to incentives
Rational people think at the margin
People face tradeoffs and opportunity costs.
Reflects the fact that resources are unlimited.
Makes them well liked by others.
Shows that they do not respond to monetary incentives
Makes them better off
People do not respond to incentives since incentives require scarce resources
All economic analysis must be normative.
People do not intentionally make decisions that would leave them worse off
People never make bad decisions
An output combination that is unattainable with the current resource and technology levels.
Resources are being used very efficiently.
Opportunity costs are constant.
Resources are idle.
How money affects the economy
How individual households and firms make decisions
How government affects the economy
How the economy as a whole works
The quantity of H demanded will move along its demand curve.
The demand curve for H will shift to the left.
The demand curve for H will shift to the right
The demand curve for H will remain unchanged
Can be either a shift or a movement along the demand curve
Is caused when there is a change in a ceteris paribus factor
Is a shift of the demand curve
Is a movement along the demand curve
There would be a surplus of rental housing
The supply of rental housing would decrease.
There would be a shortage of rental housing
The demand for rental housing would increase.
Specific sectors within the economy
The retail industry only
Decisions made by firms
Aggregates within the economy
The demand for peanut butter will fall
The price of peanut butter will fall
A smaller amount of peanut butter will be purchased
The demand for peanut butter will rise