1. Resources are scarce.
2. The real cost of something is what you must give up to get it.
3. “How much?” is a decision at the margin.
4. People usually take advantage of opportunities to make themselves better off.
1. There are gains from trade.
2. Markets move toward equilibrium.
3. Resources should be used as efficiently as possible to achieve society’s goals.
4. Markets usually lead to efficiency.
5. When markets don’tachieve efficiency, government intervention can improve society’s welfare.
1. One person’s spending is another person’s income.
2. Overall spending sometimes gets out of line with the economy’s productive capacity.
3. Government policies can change spending.
Thereare two main reasons economists disagree:
Whichsimplifications to make in a model
the demand curve is __________ sloping
the demand curve is downward sloping
A movement along the demand curve is a change in...
"StudyBlue is great for studying. I love the study guides, flashcards and quizzes. So extremely helpful for all of my classes!"Alice , Arizona State University
"I'm a student using StudyBlue, and I can 100% say that it helps me so much. Study materials for almost every subject in school are available in StudyBlue. It is so helpful for my education!"Tim , University of Florida
"StudyBlue provides way more features than other studying apps, and thus allows me to learn very quickly!??I actually feel much more comfortable taking my exams after I study with this app. It's amazing!"Jennifer , Rutgers University
"I love flashcards but carrying around physical flashcards is cumbersome and simply outdated. StudyBlue is exactly what I was looking for!"Justin , LSU