ECON 300 Greco Test 1
Terms in this set (47)
(financial capital) is not a resource
examination of a single business firm is a topic area of
forces all economic units to make choices
factor of production
a resource is also known as a
includes all human effort
deals with variables on a economy-wide basis
means "everything else being equal"
statements deal with things that can be tested by facts
deals with the "what ought to be"
Inversely related variable
change in opposite directions
has a zero slope
has a different slope at each point
the good or service sacrificed for a chosen good or service
all points on a production possibilities curve are
are also identified by the goods sacrificed when choices are made
the quantity of other goods given up
in production possibilities analysis, opportunity cost is measured by
production possibilities curve
this illustrates that some of one good must be given up to get more of another good
a point _______ a production possibilities curve reps an output combo < the maximum output possible
in ________ ________ a production possibilities curve, some of one good must be given up to attain more of another good.
an increase in economic efficiency is achieved when moving from a point ________ a production possibilities curve to a point ________ the curve.
a point ______ of a production possibilities curve is unattainable.
an increase or improvement in resources can cause a _______ shift of a nation's production possibilities curve
an increase in _____ decreases the demand for an inferior good
a surplus refers to an excess ______
excess ________ situations push prices up toward equilibrium
price of the good
the ceteris paribus clause in the law of demand allows onnly the __________ to change.
quantity demanded; demand
changes in the price of a good change the _______ of a good, not the ______ for a good
an increase in the price of a substitute good will _______ the demand for a good
a decrease in the price of a complementary good will ______ the demand for a good
a supply curve shows a ______ relationship between prices and quantities supplied.
as the number of suppliers increases, the supply curve will _______ (move to the right).
an increase in supply shifts the supply curve to the _____
a decrease in resource prices would cause a(n) ___________ in supply
at prices _________ equilibrium, quantity supplied is greater than quantity demanded.
equilibrium price will ______ when demand increases and supply remains constant
a price floor results in an excess ______
Public goods tend to be _____-______ by private firms
increases; stays the same
both equilibrium price/quantity will increase when demand _____ and supply __________.
Increases in d and s are illustrated by movements to the ____ of each curve
If demand increases by less than supply, market price will _____ and quantity exchanged will _______
increase; increase, decrease, or remain the same
if demand increases and supply increases, market price will _______ and the quantity exchanged could ________.
decreases; increase, decrease, or remain the same
If demand decreases and supply increases, market price will _______ and the quantity exchange could _______.
Price Ceilings lead to excess _____ situations.
a minimum price set by the government above the equilibrium price
a cost or benefit experienced by other than the buyer or seller of a good is called an
in case of _______ (negative externalities) the true costs of a firm is understated
public goods are usually provided by