Terms
The study of how society manages its scarce resources
Economics
A point inside the PPF is ________ and ________
feasible, inefficient
When a country can produce a good at a lower opportunity cost than another country
Comparative Advanatge
Will a change in the price of carrots shift the Supply or Demand curve for carrots?
Neither
Price elasticity of demand measure the responsiveness of ________ to changes in the __________ of that good
Quantity Demanded, Price
Whatever must be given up to obtain some item
Opportunity Cost
A point on the PPF is ________ and ________
Feasible, Efficient
When a country can produce more of a good
Absolute Advantage
After Supply increases, what happens to equilibrium P and Q?
Price decreases, Quantity Increases
Which elasticity measures the responsiveness of Quantity Demanded of one good to changes in the price of another?
Cross-Price elasticity
Where Quantity Demanded is equal to Quantity Supplied
Equilibrium
A point outside the PPF is ______ and ________
infeasible, effcient
If Bill can make 20 Donuts or 50 Kolaches and Don can make 30 Donuts or 40 Kolaches, Who has Absolute Advantage in Donuts?
Don
After Demand decreases, what happens to equilibrium P and Q?
Price decreases, Quantity decreases
What does a perfectly inelastic demand curve look like?
Vertical straight line
Attempts to prescribe how the world should be
Normative Sttement
What does PPF stand for?
Production Possibilities Frontier
If Bill can make 20 Donuts or 50 Kolaches and Don can make 30 Donuts or 40 Kolaches, Who has Absolute Advantage in Kolaches?
Bill
An increase in the price of milk will shift the ________ curve for cereal which way?
Demand, left
If the number for income elasticity of demand is negative, what type of good is it?
Inferior good
A product whose demand rises when income rises
Normal Good
You can use the PPF to calculate the _______ _______ of producing one good over the other
Opportunity Cost
If Bill can make 20 Donuts or 50 Kolaches and Don can make 30 Donuts or 40 Kolaches, Who has Comparative Advantage in Donuts? Kolaches?
Don, Bill
If the wages of Construction workers increases, the ________ curve will shift which way in the market for homebuilding?
Supply, left
Good A: Price increases from $5 to $10
Good B: Quantity Demanded Increases from 100 to 200
What is the CPE and what is the relationship of these two goods?
1, Substitutes