Macro

The law of supply states that as prices _____, the quantity _____.

rise; supplied rises

16. Scarcity refers to the fact that:

a person must make choices given the resource limitations he or she faces.

_____ advantage exists when one country can produce more of a good than another country.

Absolute

The payment to entrepreneurship is called:

Profit

Which statement about markets is TRUE?

They bring buyers and sellers together.

Which factor would NOT change the demand for sea kayak tours?

a decrease in the price of a sea kayak tour

Capital, which includes all manufactured products that are used to produce other goods and services, earns:

interest.

If the demand for iPhones rises as incomes increase, then the iPhone is a(n) _____ good

normal

13. The opportunity costs of attending college do NOT include:

the expenditures for food.

Because of scarcity

we face tradeoffs in nearly every choice we make.

Consider the following statements. Which, if any, are positive statements?

A new parking garage on campus will reduce parking congestion.

Assume that a student attends a four-year college with tuition costs of $20,000 per year, room and board costs of $5,000 per year, and books/entertainment costs of $1,000 per year. If the student did not go to college, she would work at a job that pays $25,000 per year but still face the same room and board and entertainment expenses. The opportunity cost of attending college for this student for four years is:

100,000

12. If the price of kayaks rises, the:

quantity supplied of kayaks increases.

The production possibilities model holds _____ and _____ constant.

resources; technology