Supply and Demand
this law is inversely proportional
what is law of demand
this is who trade restrictions most benefit`
who is domestic producers
the definition of economics
what is the study of the way individuals, firms and society make decisions to allocate limited resources to competing wants
the definition of a production possibilities frontier
what is a model that shows the combinations of two goods a society can produce at full employment
this type of surplus is the difference between market price and the price at which firms are willing to supply
what is producer surplus
this type of good decreases as income rises
inferior goods
the definition of a tariff
what is a tax on imports
the fairness of various issues and policy
these are the four factors of productions
what is land, labor, capital, and ideas
the equation for total surplus
consumer surplus + producer surplus
the demand of this type of good increases when the demand of it's ___ increases
what is a compliment
the definition of a quota
what is a restriction on the volume of imports of a specific product
this kind of statement addresses society's beliefs about what should or should not take place
what is normative
this is when points on the ppf are attainable but not efficient
what is under the ppf curve
this is when markets are efficient
what is when they generate the largest possible amount of net benefits to all parties involved
Name two non-price factors that affect supply
what are: number of sellers, cost of resources, production technology, prices of related commodities, expectations, taxes and subsidies
(true or false) only one or two countries can gain from trade
false; every country can trade if they follow their comparative advantage
the definition of scarcity
what is unlimited wants clash with limited resources
this type of advantage means one's opportunity cost is lower than another one's`
what is comparative advantage
these are the reasons markets fail
what is: lack of competition, information i not shared by all parties, existence of eternal benefits or costs
Subsidies cause this
surplus, causing the price to decrease
this means no autarky
what is no trade
people respond to these, both good and bad
what are incentives
this is how you figure out what one should specialize in
what is their comparative advantage
the loss of consumer surplus and producer surplus caused by the inefficiency of a market that is no operating at equilibrium
what is deadweight loss