University Of Alabama - Tuscaloosa

The study of economics - Answer the study of how society manages its scarce resources scarcity - Answer the limited nature of society's resources Efficiency - Answer when society gets the most from its scarce resources Equality - Answer when prosperity is distributed uniformly among society's members Tradeoff - Answer To achieve greater equality, could redistribute income form wealthy to poor. But this reduces incentive to work and produce, shrinks...

The terms equality and efficiency are similar in that they both refer to benefits to society. However, they are different in that - Answer equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources. A decrease in quantity demanded - Answer results in a movement upward and to the left along a demand curve. if macaroni and cheese are complements, then which of the following would increase the demand for macaroni? -...

Willingness to sell - Answer The minimum price that a seller is willing to accept in exchange for a good or service Willingness to pay - Answer The maximum price that a buyer would be willing to pay for a good or service Producer surplus - Answer The net benefit that a producer receives from the sale of a good or service, measured by the difference between the producer's willingness to sell and the actual price Consumer surplus - Answer The net benefit that a ...

On a graph, the area below a demand curve and above the price measures producer surplus. consumer surplus. deadweight loss. willingness to pay. - Answer consumer surplus. If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the consumer has consumer surplus of $2 if he or she buys the good. consumer does not purchase the good. market is not a competitive market. price of the good will fall due to market force...

economics - Answer the study of how society manages its scarce resources microeconomics - Answer study of how households and firms make decisions and how they interact in markets; ti examine behavior and operation of the individual consumers and firms that make up economy. macroeconomics - Answer study of economy wide phenomena, including inflation, unemployment, and economic growth equality / equity - Answer the property of distributing economic prosperity unifo...

The law of supply states - Answer other things equal, when the price of a good rises, the quantity supplied of the good rises. Price elasticity of demand - Answer To determine a normal or inferior good - Answer income elasticity of demand for that good Demand is said to be price elastic if - Answer buyers respond substantianlly to changes in the price of the good The law of demand - Answer other things equal, when the price of a good rises, the quantity...

A price ceiling is BINDING when it is set - Answer Below the Equilibrium price, causing a shortage. Economist use the concept of price elasticity of demand to - Answer Measure how much buyers respond to changes in the price of a good. When demand is perfectly inelastic, the price elasticity of demand - Answer is zero and the demand curve is vertical Perfectly elastic demand implies that - Answer Any raise in price above that represented by the demand curve will r...

In general, a relatively flat demand curve is more likely to be - Answer price elastic When the price of a good rises, - Answer consumer surplus decreases because some buyers will leave the market and the remaining buyers will now pay a higher price. If a price ceiling is a binding constraint on the market price celling - Answer the equilibrium price must be above the price celling ceiling If a 2% rise in price leads to a 4% decrease in quantity demanded, then price el...

Economics - Answer The study of the choices consumers, business managers, and government officials make to attain their goals, given scarce resources Scarcity - Answer Although our wants are unlimited, the resources available are not. ex.) time 3 Keys to Economics - Answer 1. People are rational 2. People respond to economic incentives 3. Optimal decisions are made on the margin Rationality - Answer Weighing the pros & cons Tradeoffs - Answer Producing...

What is economics - Answer the study of how society manages its scarce resources What is scarcity - Answer the limited nature of society's resources What is efficiency - Answer when society gets the most from its scarce resources What is opportunity cost - Answer whatever must be given up to obtain it EXAMPLE - Answer The opportunity cost of going to college for a year isn't just the tuition, books and fees, but also the foregone wages What is a...