1.1 &1.2
1.3
1.4
1.5
100
Economics is the study of this.
scarcity / human choices
100
Countries do this to gain an advantage in trade.
Specialize.
100
The law of demand state that there is this relationship between price and quantity demanded.
Inverse
100
The law of supply states that there is this relationship between price and quantity supplied.
direct or positive
200
These are the four factors of production.
Land, Labor, Capital, Entrepreneurship
200
A traded commodity is always expressed in terms of this.
Another commodity.
200
ceteris paribus means this.
all other factors held constant
200
If the government decreases taxes on toys, the supply curve will do this.
Shift to the right
300
A point on the PPC curves means this.
The economy is using resources efficently.
300
D.
300
If consumers buy more of good B when the price of good A rises, the two goods are this.
Substitutes
300
If people prefer mountain dew over mellow yellow, the supply curve of mellow yellow will do this.
Not shift
400
A straight PPC means that the two goods are this.
easily interchangeable / adaptable.
400
When both countries are profitable in trade, it is called this.
Mutually beneficial trade
400
These are all 5 shifters of demand.
Tastes and Preferences
Number of Consumers
Price of Related Goods
Income
Future Expectations
400
These are all 5 shifters of supply.
Prices/Availability of inputs (resources)
Number of Sellers
Technology
Government Action: Taxes & Subsidies
Expectations of Future profit
500
The term economists use to describe the declining value of capital goods is called this.
Depreciation
500
If Rayland can produce 1,200 hats or 300 bikes and Artland can produce 600 hates or 300 bikes, which country has the comparative advantage in producing bikes?
Artland
500
A change in quantity demanded does this to the demand curve.
500
Like demand, supply varies with this depending on how much it responds to a change in price.
Elasticity