Econ 212 - Study guides, Class notes & Summaries

Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. This economy . . . correct answers can improve its allocation by producing more of one good and less of the other. The economizing problem is one of deciding how to make the best use of . . . correct answers limited resources to satisfy virtually unlimited wants. In moving along a given budget line . . . c...

____ is the fundamental economic problem that human wants exceed the availability of time, goods, and resources. correct answers scarcity ____ is the study of how individuals and society choose to allocate scarce resources to satisfy unlimited wants. correct answers economics Factors of production classified as: land, labor, and capital are also called . correct answers resources _____ applies an economywide perspective, which focuses on such issues as inflation, unemployment, and th...

Short Run correct answers a period of time when plant capacity and the number of firms in the industry cannot change. The Long Run correct answers a period of time long enough for firms to alter their plant capacity and for the number of firms in the industry to change. Elastic supplies are very responsive to ________ __________ correct answers price changes Deadweight loss correct answers The loss in consumer and producer surplus due to inefficiency because some transactions cannot be ...

1. Why do countries trade? What causes there to be benefits to trade? correct answers Trade makes everyone better off because consumptions is much higher when trade is involved. Causes- Absolute Advantage: producing a good using fewer inputs than another producer. If Each country has absolute advantage in 1 good + specializes in that good then both countries gain from trade, Comparative advantage: the ability to produce a good at a lower opportunity cost than another producer. When each country ...

utility correct answers measure of personal satisfaction util correct answers hypothetical unit of utility marginal utility correct answers good or service is the change in total utility generated by consuming one additional unit of that good or service marginal utility curve correct answers shows how marginal utility depends on the quantity of a good or service consumed principle of diminishing marginal utility correct answers each successive unit of a good or service consumed adds ...

What are the scarce resources used to produce goods and services? correct answers Land, Labor, Capital, Entrepreneurial Ability, Production and Efficiency Economic growth determinants: correct answers Expanding resources, and improving technology Determinants of Demand: correct answers Tast and preferences, Income, Prices of related goods, the number of buyers, and expectations regarding future prices income and product availability. Determinants of supply: correct answers Production te...

GDP correct answers Gross Domestic Product- the total market value of all final goods and services produced annually in an economy GDP per capita correct answers The market value of all final goods and services produced within a country in a year divided by the population The growth rate of GDP tells us correct answers How quickly a country's production is rising or falling over time. What is the best measure of a country's changing living standards? correct answers Growth in real GDP...

Surpluses always occur correct answers at prices above the equilibrium price What happens to the equilibrium price and quantity when demand decreases and at the same time supply increases, but the relative size of the shifts are not known? correct answers The equilibrium price falls, and the change in the equilibrium quantity is ambiguous. Consider the decision to read your economics textbook. Which of the four core principles of economicsapplies to the notion that reading this textbook wi...

Total Revenue correct answers Price x Quantity consumer surplus correct answers difference between market price and what consumers are willing to pay producer surplus correct answers difference between market price and the price at which firms are willing to supply it Deadweight loss correct answers the loss of consumer surplus and producer surplus caused by the inefficiency of a market that is not operating at equilibrium economic (total) surplus correct answers consumer surplus + p...

The Study of how people, institutions, and society make economic choices under conditions of scarcity. correct answers economics The Value of the good, service, or time forgone to obtain something else. correct answers opportunity cost A viewpoint that envisions individuals and institutions making rational decisions by comparing the marginal costs of their actions. correct answers economic perspective The satisfaction obtained from consuming a good or service. correct answers utility ...