Ch 1: Fundamentals
Gains from specialization and mutually beneficial trade, _________ wealth or well-being.
increases
Property owned by individuals is called
Private property
There is an increased consumer preference for headphones, that are wireless. How will this impact the market for wireless headphones?
Demand for wireless headphones will increase
Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause
a rightward shift of the supply curve.
The role of the entrepreneur in society is to
bringing the factors of production together and taking the risks of producing.
When economists describe "a market," they mean
any place where, or mechanism by which, buyers and sellers interact to trade goods, services, or resources.
If the price of Pepsi decreases, all else held constant, then what would we expect to see a happen to the demand curve for Coke
shift to the left
The price of cotton has increased. How will the market for cotton t-shirts respond?
The supply of cotton t-shirts will decrease.
Lauren makes $150 a day as a bank clerk. She takes two days off work without pay to attend the concert of her favorite band. The cost of the concert ticket is $50. The opportunity cost of Lauren’s decision to attend the concert is
$350
Specialization allows a society to produce _____________ goods
more
In a market, buyers want to pay the _____ possible price and sellers want to charge the _____ possible price
lowest, highest
As frozen yogurt became popular, many different frozen yogurt shops popped up all over the country. This suggests that the
supply of frozen yogurt increased.
Alfred Pennyworth is willing to sell his used economics textbook for $30. Barbara Gordon is willing to pay $60 for the used economics textbook. Alfred and Barbara agree on a price of $45. The gains from trade for Alfred equals ________ and the gains from trade for Barbara equals ________.
$15, $15
Adam Smith wrote in his book "The Wealth of Nations" that competition ________ the entrepreneur.
regulates
Who determines the price and quantity traded in a market?
buyers and sellers
How did production improvements, like automated factory robotics, help the production of the iPhone 17?
It increased the supply of iPhone 17s.
Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates
opportunity costs
Robert traded her string cheese for Tonny's apple the other day at lunch. Who was made better off?
both Robert and Tonny
What is the difference between demand and quantity demand?
Quantity demand is a number while demand is the whole curve.
All else held constant, if the government places a tax on each gallon of gasoline produced, then this would cause a
leftward shift in the current supply of gasoline.