The process by which resources are transformed into useful forms is The concept of choice would become irrelevant

if Which of the following is not a resource as the term is used by economists? Opportunity cost, most broadly define, is Laboratory (or controlled) experiments cannot be performed in economics because Rational choice or rational decision-making involves The 'law of demand' implies that The quantity demanded (Qd) of a soft drink brand A has decreased. This could be because Demand curves in P-Q space are derived while holding constant Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are If the demand for coffee decreases as income decreases, coffee is Which of the following is consistent with the law of supply? When the market operates without interference, price increases will distribute what is available to those who are willing and able to pay the most. This process is known as What is the effect of imposing a fixed per unit tax on a good on its equilibrium price and quantity? A price floor is The need for rationing a good arises when If a government were to fix a minimum wage for workers that was higher than the marketclearing equilibrium wage, economists would predict that The price elasticity of demand is the If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross-price elasticity of demand between beef and chicken is The burden (incidence) of a tax will fall mainly on the producers if Income elasticity of demand is the % change in quantity demanded divided by the % change in income. Which type of goods has negative income elasticity of demand? If total revenue rises by 10% when price increases by 5%, this means: If a 5% increase in price causes no change in total revenue, this means: Economists use the term utility to mean Economists use the term marginal utility to mean The law of diminishing marginal utility states that Economists have used the idea of diminishing marginal utility to explain why

Production Scarcity was eliminated. Money What we give up, when we make a choice or a decision economics is a social science Weighing up marginal costs & marginal benefits associated with a decision As prices fall, quantity demanded increases The price of A has increased Incomes, tastes, & the prices of other goods Complements. A normal good As the price of calculators rises, the quantity supplied of calculators increases Price Rationing Price rises, quantity falls A minimum price usually set by government, that sellers must charge for a good or service Demand exceeds supply More workers would become employed Ratio of the percentage change in quantity demanded to the percentage change in price 0.25 Supply is inelastic and demand is elastic Inferior goods Demand is price inelastic Demand is unit elastic The satisfaction a consumer obtains from a good or service Additional satisfaction gained by the consumption of one more unit of a good The satisfaction derived from each additional unit of a good consumed will decrease Demand curves slope downwards. Demand curves become flatter at lower

A consumer will buy more units of a good if the value of the good's Economists define an indifference curve as the set of points The curve that is traced out when we keep indifference curves constant and move the budget line parallel to its original position is Indifference curves cannot The main problem with marginal utility analysis is:
The costs that depend on output in the short run are

prices. Marginal utility is greater than price Which yield the same total utility the income-consumption curve Intersect each other Its cardinal measurement of utility
both total variable costs and total costs

the added revenue that a firm takes in when it increases output by one additional unit is A firm will shut down in the short run if If you were running a firm in a perfectly competitive industry you would be spending your time making decisions on Market power is Relative to a competitively organized industry, a monopoly If firms can neither enter nor leave an industry, the relevant time period is the In the long run Economic profits are A group of firms that gets together to make price and output decisions is called Price discrimination involves An industry that has a relatively small number of firms that dominate the market is called A form of industry structure characterized by a few firms each large enough to influence market price is A firm in a monopolistically competitive industry In monopolistic competition, firms achieve some degree of market power A Giffen good A recession is The index used most often to measure inflation is the Per capita income is obtained by dividing National Income by Imports for any economy are considered as: Disposable income is: The rate at which central bank lends to commercial banks is known as

Marginal revenue Total variable costs exceed total revenues How much of each input to use A firm's ability to raise price without losing all demand for its product Produces less output, charges higher prices and earns economic profits. Short run There is no fixed factors of production The difference between total revenue & total costs A Cartel Firms selling the same product at different prices to different consumers A concentrated industry. Oligopoly Must lower price to sell more output By producing differentiated products Is a good which people buy more of as its price increases A period during which aggregate output declines Consumer price index Total population of that country Leakages Total income minus net taxes Discount rate