Edmondson Chapter 16 Review

What is economics?

The fixed cost of an item includes its total costs and variable

The increase in expenses caused by producing an additional unit of something is called

Economic questions are answered on the basis of habit

This is the study of how people use limited resources to satisfy their unlimited wants

Which of the following is a type of resource?

Which of these are an example of a fixed cost?

Giving up one alternative good or service for another is

The lost income from not taking a shift at work is an opportunity cost of studying for a test

Planners who work for the government answer the economic questions

What is the first of the three basic economic questions?

In a market economy, prices act as signals to both consumers and producers

What are two factors that can increase supply in the market

In Economics, demand means all of the people who want a certain good or service

Government and private business owners play roles in a compete for profit system

Expenses that do not change no matter how much a business produces are called

The cost of the next-best use of your money or time when you choose to do another is known as

How is demand displayed on a graph?

In the United States, prices are established primarily by?

What do businesses utilize when making decisions among various projects?

Individuals and businesses own the resources used to produce goods and services

According to the rule of marginal analysis, one should continue producing a good/service until?

To be efficient, markets must

Expenses that change depending on how much a business produces are call

The money a business receives from selling its goods or services are called

A surplus typically indicates that

Scarcity is the basic economic problem because?

The point where the supply and demand curves meet is?

When the prices of a good are low?

extra income that results from selling one more unit of the output is called marginal revenue

The additional income received from each increase of one unit in sales is called the

What are two factors that lead to scarcity?

The people who buys goods and services are called producers

What is the struggle among sellers to attract buyers?