- 1.1: Explain the significance of: economics,microeconomics, macroeconomi...
- 1.2: Making Distinctions Wants and needs arenot always easy to separate....
- 1.3: The BIG Idea Explain why scarcity andchoice are basic problems in e...
- 1.4: Identifying Scarcity leads to economicchoices. Give an example of a...
- 1.5: Microeconomics For every purchase youmake, you affect the economy. ...
- 1.6: Choose the letter of the term that best completeseach sentence. a. ...
- 1.7: Choose the letter of the term that best completeseach sentence. a. ...
- 1.8: Choose the letter of the term that best completeseach sentence. a. ...
- 1.9: Choose the letter of the term that best completeseach sentence. a. ...
- 1.10: What is the difference between microeconomicsand macroeconomics?
- 1.11: How does scarcity differ from a shortage?
- 1.12: Your friend says, I need some new clothes.Under what conditions wou...
- 1.13: Complete the chart below by listing the fourfactors of production a...
- 1.14: What does making a trade-off require you to do?
- 1.15: If a person chooses to buy a pair of shoesinstead of a new jacket, ...
- 1.16: What does a production possibilities curve show?
- 1.17: For what purposes do economists use realworlddata in building models?
- 1.18: What do economists and other scientists callthe educated guesses th...
- 1.19: When does an economist consider an economicmodel useful?
- 1.20: What is the opportunity cost of making 7bookshelves with the time a...
- 1.21: What must happen in order to move frompoint B to point C?
- 1.22: What would happen to the curve if thecarpenter got sick for a coupl...
- 1.23: Point E represents an impossible situationthecarpenter would not be...
- 1.24: The BIG Idea Imagine that the Guevara familybuys a large piece of l...
- 1.25: Study the cartoon on theright, and then answer thefollowing questio...
Solutions for Chapter 1: The Basic Problem in Economics
Full solutions for Microeconomics | 21st Edition
a curve that shows the quantity of goods and services that firms choose to produce and sell at each price level
a certificate of indebtedness
a large and sudden reduction in the demand for assets located in a country
the process by which unions and firms agree on the terms of employment
a difference in wages that arises to offset the nonmonetary characteristics of different jobs
a decrease in investment that results from government borrowing
the paper bills and coins in the hands of the public
the property of a good whereby a person can be prevented from using it
federal funds rate
the interest rate at which banks make overnight loans to one another
law of supply
the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises
the ease with which an asset can be converted into the economy’s medium of exchange
marginal product of labor
the increase in the amount of output from an additional unit of labor
marginal tax rate
the amount that taxes increase from an additional dollar of income
a market structure in which many firms sell products that are similar but not identical
nominal exchange rate
the rate at which a person can trade the currency of one country for the currency of another
price elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
production possibilities frontier
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
a tax for which highincome taxpayers pay a larger fraction of their income than do low-income taxpayers
a worker association that bargains with employers over wages, benefits, and working conditions
government programs that supplement the incomes of the needy welfare economics the study of how the allocation of resources affects economic well-being