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20 Cards in this Set
- Front
- Back
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ceteris paribus
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to isolate the impact of one single factor economists invoke the assumption of
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creation of capital
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in economics investment always refers to
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capital, as economists use the term
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refers to things that have already been produced that are in turn used to produce other goods and service
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consider 2 countries, Japan and Malaysia. Japan devotes a smaller portion of its production to capital. All other things equal which of the following statements is most likely true
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Malaysia ppf will shift up and out farther and faster than Japan
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the concept of trade offs would become irrelevant if
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scarcity was eliminated
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according to the theory of comparative advantage, specialization and free trade will benefit
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all trading parties even when some are absolutely more efficient producers than others
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law of demand
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price falls qd increases
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if demand for sardines increases as income decreases sardines are
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inferior good
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decrease in the price of one good cause the demand for another good to decrease the goods are
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substitutes
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demand curves are derived while holding constant
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income tastes and the prices of other goods
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factor market
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where resources are exchanged
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refer to table for molly oc of designing one tattoo is
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4 avatar
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for Pete oc of one tattoo is
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2 avatar designs
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to maximize total production
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molly should specialize in avatar design and Pete should specialize in tattoo design
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if this market is unregulated and the price is $90 you would expect that the price of sunglasses would
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fall to $60
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price per pizza is $3 price will
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increase, excess demand in market
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law of supply
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positive relationship between price and quantity of a good supplied
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gov imposes a price floor on wheat that is below market price
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that no rationing system will be necessary
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an example of effective price ceiling would be the government setting the price of wheat
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$3.75
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if the supply of lobsters increase and the demand for lobsters
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may increase decrease or stay the same will increase
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