Economics Review

Humans have wants that are greater than the limited _________ available. This forces us to make choices among alternatives.

Individuals consider trade-offs during a cost/benefit analysis, which may examine the ________ ____(the value of the next best option).

________ utility is the measurement of the benefit enjoyed by consuming the next good, given one's current circumstances.

What are the four resources that producers likely need to produce goods?

Answer explanation

Capital Resources (machines and tools used to aid in production), Natural Resources (materials taken from the earth and transformed to meet consumers demands) , Human Resources (people to operate and manage the production process), and Entrepreneurial Ideas (someone to direct produce toward the best market options)

The ________ price (or market clearing price) is established at the point where the quantity demanded matches the quantity supplied.

When the price moves higher the quantity ________ will be higher and the quantity _______ will be lower.

If a price ceiling is set below the market clearing price, there will probably be a _______ of that good or service.

DEMAND increases when a good becomes more popular, the price of a substitute good increases, the price of a __________ good decreases, more consumers enter the market, an ________ in consumer income, or an expected future price increase.

SUPPLY increases when the ________ of production decreases, new technology adds efficiency, expectations of lower future profits, more sellers enter the market, or government ________.

People trade with others because they believe the value of what they receive is __________ than the value of what they give up.