Macro Econ Exam 1

which is not a pitfall to avoid in economic thinking

when individuals engage in voluntary echange,

the tendancy for people pursuing their interests, to promote the economic wellbeing of society

which are factors that shift the PPC (multi-select)

method of organization where private parties make plans & decisions w/ market prices

efficiency of market organization requires

positive economics is ______________?

Choice is the act of selecting among alternatives

how many shifters of demand are there?

one whill undergo an action when the marginal benefits outweigh the marginal costs

choice is influenced in a non-predictable way by changing incentives

productive resources are owned privately, goods & resources are allocated through market price

bad intentions do not guarentee desireable outcomes

how many guideposts are there to economic thinking?

a situation in which all of the potential gains from a trade have been realized

direct relationship btween the $$ of a good/service and amount that suppliers will produce

violation of ceteris parabus principle

how many incentives to property rights are there?

outlines all possible combinations of total output that could be produced assuming..

why does capitalism tend to work? (multiselect)

which are shifters of supply?

Scarcity is the same thing as poverty

what does private property rights not involve

if demand changes

information helps us make better decisions, but is costly

which is not a question of economic organization

which direction would an increase in the demand curve go?

if supply changes

profits direct the producers towards activities that increase the value of the resources

trade creates value

a state in which the conflicting forces of supply and demand are in balance

the OC Formula is: what you give up/ what you get

which is not a resource

the concept that there is less of a good freely available from nature than people would like

Inelastic

focuses on how human behavior affects outcomes in highly aggregated markets

the difference between the max. amount consumers will pay and the amount they actually pay

the value of a good/service is subjective

private owners have an incentive to care for and manage what they own

human made resources used to produce other goods and services

scarcity necessitates rationing

is supply goes up, the curve shifts __________

does human ingenuity effect economics?

Economics is the study of _________________?

there is an inverse relationships between price of a good & quantity that buyers will purchase

the highest valued alternative that must be sacrificed when chosing an option

PPC stands for

how many pitfalls should we avoid in economic thinking?

the process by which some people become rich will make everybody richer

is demand the curve or the x-axis?