Economics is the study of
how society uses limited resources
The knowledge and skills acquired by a worker through education and experiences is a description of which factor of production
human capital
Which of the following is an example of a normative question
should Florida implement a state income tax to reduce its deficit?
Economic models are used to
explore decision making by individuals, firms and other organizations and their outcomes
The opportunity cost of something is
what you sacrifice because of the choice you make
The trade offs made by the US government to fund the war in Iraq
represent what was potentially sacrificed to engage in the war
People acting in their own self interest is the basis of the
principle of voluntary exchange
according to the principle of diminishing returns, if the number of workers increased beyond the point of diminishing returns, then the additional worker
increases total output by less than the amount of previous workers
If nominal salaries increase but real salaries fall, this means that
the purchasing power of money has decreased
a change in the quantity demanded of a product is the result of a change in
the price of the product
the quantity demanded of a product increases as
the price of the product falls
In constructing demand curves, the ceteris paribus principle directs the economist to assume that
quantity changes don't affect prices
the market demand curve
show the relationship between the price of a good and the quantity that all consumers together are willing to buy
the law of demand can be explained as
the higher the price, the smaller the quantity demanded, ceteris paribus
after the government decreased cigarette taxes in several Canadian provinces, demand for cigarettes ___________ in the provinces; shifting the demand curve to the ___________
Increased;right
a change in demand for cigarettes resulting from a decrease in taxes would normally create, ceteris paribus
an increase in the quantity supplied