EC并NOM|CS U.S. Net Exports Turned Sharply Negative in 1980S

Inflation Is a Fundamental Constraint on Economic Policy

Actual Structural and Cyclical Budget Deficits Government Debt Displaceste Capital T-260

MB MC Overview 1 a Chapter l introduces the concept of scarcity as applied in economics(also the No-Free-Lunch Principle). It presents the unavoidable fact that our needs and wants are unlimited and resources available to satisfy them are limited

This chapter introduces comparative advantage and shows that having people specialize in the production in which they are relatively more efficient allows the production of more of everything. It introduces the production possibilities curve and develops the production possibilities model to show precisely how specialization enhances the productive capacity of an economy

1. The equilibrium price of a good is determined by the intersection of its supply and demand curves. We can know everything about a goods cost of production( that, is we can know its supply exactly) yet still not know where the demand curve will intersect the supply curve

Multiple Choice 1. Equilibrium a. is a concept unique to economics. b. always occurs where supply equals demand. C. results when opposing forces fail to cancel each other out. d. indicates balance. e. all of the above

Chapter 1 Thinking Like an Economist Chapter 2 Comparative Advantage Chapter 3 Supply and Demand: An Introduction Chapter 4: Elasticity

Chapter 5 presents the material in a way that illustrates the core principle of the textbook, that marginal benefits should equal marginal costs The chapter presents the demand curve as derived from marginal benefits. Chapter 6 presents the supply curve as derived from marginal costs These two chapters provide the details behind the principle that Mc- MB and give students a solid

1. The principle of increasing opportunity cost, also known as the low-hanging-fruit principle, says that the least costly options should be exploited first, with more costly options taken up only after the least costly ones have been exhausted. At low prices, only those with low opportunity costs of producing the product would find it worthwhile to offer it for sale. As prices