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Cards In This Set
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A good is considered to be scarce in a society when...
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Everyone in that society cannot have all they want of the good
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Suppose that Korea produces shoes and soccer balls. For Korea...
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The opportunity cost of shoes will be the inverse of its opportunity cost of soccer balls
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The opportunity cost of an item is |
What you give up to get that item
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Trade...
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Allows a person to consume at a point outside his production possiblities frontier
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When countries specialized according to their comparative advantage... |
It is possible to increase world output of all goods
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The amount of the good buyers are willing to and able to purchase is the... |
Quantity demanded
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If the price of a substitute to good X, increases, then the...
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Demand for good X will increase
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The law of demand says that when price...
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Rises, quantity demanded falls.
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A very hot summer in Atlanta will cause the demand for lemonade to... |
Shift to the right.
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If cigarettes and marijuana had been found to be substitutes, a tax payed on cigarettes would...
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Increase the demand for marijuana
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The side of the market that deals with the willingess and ability to produce and sell is...
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Supply
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Lead is an important input in the production of crystal. If the price of lead decreases, all else equal, we would expect the supply of...
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Crystal to increase
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An increase in the price of a good would... |
Give producers an incentive to produce more
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Which of the following will definitely case equilibrium quantity to fall... |
Demand and supply both decrease
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Which of the following would unambiguously cause a decreae in the equilibrium price of cotton shirts...
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A decrease in the price of wool shirts and a decrease in the price of raw cotton
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