Supply and Demand
The direction the supply curve moves when input costs decrease
What is a market
A change in income shifts which curve?
What is Demand
The name for which we call one country being able to produce a greater amount of a product than another country, regardless of opportunity cost.
What is absolute advantage
The term we call the limited nature of resources in a nation.
What is scarcity
The direction the demand curve moves when the price of a substitute goes down
What is left
_______ is what we call the result of all countries trading with one another to maximize efficiency
Interdependence
A change in input costs changes which curve?
What is Supply
The name for when a country can produce a good with lower opportunity cost than another country.
What is comparative advantage
The study of how a nation allocates their scarce resources among citizens.
What is Economics
The law of demand states that as prices go up, quantity demanded goes ______
In a competitive market, buyers and sellers are considered ______ because they have no influence over the price they charge/buy for.
What is price takers
An increase in the price of a complement does what?
What is shifts demand to the left
The US can make 100 t shirts or 20 pairs of jeans. The UK can make 90 t shirts or 10 pairs of jeans. The US has an absolute advantage in ________.
What is both products
The following is an example of a _______ statement: The US should give more tax money to the poor.
If demand for a good shifts right and supply for the good also shifts right, quantity demanded ______
What is increases
What was the item sold in Kenya in the class example that shows interdependence between countries?
What is a rose
A sudden innovation in the making of a product leads to what?
What is a shift of the supply curve to the right
The US can make 12 sodas or 60 lemonades. The UK can make 8 sodas or 56 lemonades. The US has a comparative advantage in producing what?
This is a transaction that all countries can benefit from in cases of comparative advantage.
What is trade
If demand shifts left and supply shifts left, which direction does the price move?
What is we don't know/it's ambiguous
In a perfectly competitive market, items sold are all what?
A new law makes selling new gasoline cars illegal. This will lead to two curve shifts in the market for electric cars. Which two curve shifts will occur?
What is demand shifts right and supply shifts right
The US and the UK produce sodas and lemonades. If the US should specialize in sodas, this means the UK has an absolute advantage in which good?
What is impossible to know/cannot determine
The kind of economist that makes normative statements is considered a ______ ________.
What is a policy advisor