What is Economics
The study of how individuals and societies allocate scarce resources.
What is the goal of economics?
The next best alternative we forgo when making a resource allocation decision.
What is opportunity cost?
The axes on a demand graph.
What is price and quantity?
The U.S. government imposes a tariff on steel from Canada (i.e. a fiscal policy) which causes the _____ curve to shift to the ______.
What is supply and left?
The intersection of the demand and supply curves.
What is the equilibrium point?
It might be useful to think of macroeconomics as a study of _____ and microeconomics as a study of _____.
What is the forest and the trees?
The participants in the economy.
What are households, firms and the government?
The cause of a demand curve to shift left.
What is a decrease in demand caused by a factor besides price and quantity?
COVID caused Dell to shut down its computer manufacturing plant. As a result, the ____ of computers ______ while the price ______.
What are supply, decreased and increased?
A condition when demand exceeds the quantity supplied.
What is a shortage?
The three questions all economies must answer.
What to produce, how to produce it, and who gets it?
He is responsible for the theory of comparative advantage and its relationship to free trade.
Who is David Ricardo?
We hold this constant along a market demand curve.
What is the price of the good or service?
The cause for a supply curve to shift right.
What is an increase in supply caused by a factor besides price and quantity?
If the government sets a price floor above the market equilibrium price, there will be ________.
What is a surplus?
The criteria for evaluating outcomes from economic policies?
What is equity, efficiency, growth and stability?
Total production in the economy is inside the PPF curve.
What is an economy not utilizing its resources efficiently?
New cars are this type of good if demand increases whenever consumer income increases.
What is a normal good?
The law of supply causes the supply curve to be shaped this way.
What is upward sloping?
The government sets the maximum price for all hamburgers at $8.00.
What is a price ceiling?
The birth of economics as its own discipline is often traced to a 1776 book, titled "The Wealth of Nations" by this author.
Who is Adam Smith?
The decision on taxes, government spending and government regulations.
What is fiscal policy?
Movie theater popcorn in relation to movie theater tickets.
What is a complimentary good?
How does the supply curve respond when production costs for cars decrease causing car prices to fall and the quantity purchased rise.
What is a shifting of the supply curve to the right.
In a laissez-faire economy, the equilibrium point for a good is determined by these participants.
What is households and businesses?