Chapter 3
Chapter 2
Chapter 5
100
What do we call whatever must be given up to obtain some other item?
Opportunity Cost
100
When is a point inefficient on the PPF(Production Possibilities Frontier)?
When it is inside the curve.
100
If a good is inelastic and price goes up, what happens to total revenue?
It goes UP.
200
Producing according to comparative advantage because it is more efficient is called....
Specialization
200
When a household spends money on a good, what does the business or firm gain?
Revenue
200
We use the ____ method to compute elasticity.
Midpoint
300
How can an economy consume outside of their PPF?
Engaging in trade
300
What are the two Economic Models that are discussed in Chapter 2?
Circular-Diagram and PPF(Production Possibilities Frontier)
300
When dealing with the price elasticity of demand, a (flatter/steeper) curve indicates a good is more elastic?
flatter
400
Will a nation typically import or export the goods in which they have a comparative advantage?
Export
400
What type of economist would study the effects of rent control on housing in New York City?
Microeconomist
400
If a good is a necessity, is it more likely than not elastic or inelastic?
Inelastic
500
Is absolute advantage or comparative advantage more important for trade?
Comparative Advantage
500
What type of statement is: “Law B will reduce national income.”
Positive Statement
500
What is the price elasticity of demand for Eggs?
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