ECON

The production possibilities curve is concave to the origin because of:

increasing opportunity costs.

Which of the following instances lead to wealth creation in a market economy?

A person earning income and providing his trading partner with a larger income

basic postulate of economics

If the personal cost of an option increases, people will be less likely to choose it. Correspondingly, when an option becomes more attractive, people will be more likely to choose it. This is the basic postulate of economics.

Which of the following is true of innovation?

It involves the economic application of inventions and marketing techniques.

The term "resources" refers to:

Resources refer to the ingredients, or inputs, that people use to produce goods and services. Land, labor, skills, natural resources, and human-made tools and equipment are examples of resources.

an economy that follows a market system

The market system relies on voluntary exchange, price signals, and freedom of entry. This results in wider variety of products, a more competitive environment, and more dynamic change

Creative destruction

The replacement of old products and production methods by innovative new ones that consumers judge to be superior is known as creative destruction. The process generates economic growth and higher living standards.

The size of the economic pie reflects:

The size of the economic pie reflects the physical effort and ingenuity of human beings. It is not an endowment from nature.

The willingness of consumers to pay a price greater than a good's opportunity cost indicates that

The willingness of consumers to pay a price greater than a good's opportunity cost indicates that they value the good more than other things that could have been produced with the same resources.

Mass production leads to labor and machinery efficiencies by:

Trade promotes economic progress by making it possible for firms to lower their per-unit costs with mass production. Mass production often leads to labor and machinery efficiencies that increase enormously the output per worker.

positive economic statement?

What is

normarive economis statement

What ought to be

If the price of corn, the staple food of Quorta, decreases from $171 per ton in October 2015 to $160 per ton in January 2016, the quantity supplied decreases from 10.76 million tons to 10.75 million tons during the period. Thus, it can be said that the supply curve of corn is most likely to be:

When quantity supplied is not very responsive to a change in price, supply is said to be inelastic. In case of inelastic supply, the supply curve is likely to be steep.

Economists would say that the demand for tacos is relatively elastic because:

a small price change will cause a rather large change in the amount purchased.

size of a country's "economic pie" is calculated:

as the total dollar value of all goods and services produced during some period of time.

The use of the political process to make decisions and allocate resources is known as

collective decision-making.

The efficiency of a market organization depends on:

competitive markets and well-defined and enforced private-property rights.

Economists argue that:

people are motivated by humanitarian and selfish goals and incentives matter equally in both.

According to an economist, firms earn a profit when:

the revenues from the goods and services that they supply exceed the opportunity cost of the resources used to make them

According to an economist, firms earn a profit when:

the revenues from the goods and services that they supply exceed the opportunity cost of the resources used to make them.