Chapter 1
This is known as the study of choices people make to attain their goals given scarce resources.
What is Economics?
This is a curve showing the maximum attainable combinations of two goods that can be produced with available resources and technology.
Identify this graph.
What is a demand curve?
Identify the shaded area on the graph, and provide an example.
What is consumer surplus?
These are products shipped out to other countries.
What are exports?
The three keys of economics are: 1) People are rational. 2) People respond to economic incentives. 3) This.
What is Optimal decisions are made at the margins?
Where absolute advantage refers to the ability to produce more with the same resources, the ability to produce more at a lower opportunity cost is referred to as this.
What is Comparative Advantage?
Identify the change happening on the graph, and provide an example.
What is shift in supply?
Identify which letter represents producer surplus.
What is B?
If China is able to produce more goods than the US given the same resources, they have this type of advantage.
What is absolute advantage?
There are three main types of economies, market, mixed, and this third type, like the one found in North Korea.
What is Centrally Planned?
The four factors of production are Capital, Natural Resources, Entrepreneurship, and this fourth factor.
What is labor?
Identify the point on the graph.
Identify which letter represents deadweight loss.
What is C?
This ratio represents the rate at which countries can trade exports for imports from other countries.
What is terms of trade?
This subject is known as the study of the economy as a whole, including topics like inflation, unemployment, and economic growth.
What is Macroeconomics?
Identify this graph, be specific!
What is a curved line PPF?
Identify A & B on the graph, and provide an example.
What is A) surplus B) shortage?
Identify lines A & B.
What is A) Price ceiling and B) Price floor?
These government placed policies are usually placed on imported goods specifically.
What are tariffs?
Where positive analysis analyzes what is, the analysis of what should be is referred to as this type of analysis.
What is normative analysis?
Identify what is happening on this graph.
What is Economic Growth?
Identify the change on the graph, and provide a reason why.
What is change in quantity supplied?
Identify which letters make up tax revenue.
What are B & C?
This international organization oversees trade agreements between nations.
What is the World Trade Organization?