Quiz 2.3

Question 1

Principle 8

Answer 1

A Country’s Standard of Living
Depends on Its Ability to Produce Goods

Question 2

Principle 9

Answer 2

Prices Rise When the Government
Prints Too Much Money

Question 3

Principle 10

Answer 3

Trade-off between Inflation and Unemployment

Question 4

Principle 8 bullet points

Answer 4

Productivity determines income

Question 5

Principle 9 bullet points

Answer 5

the value of the money falls when too much is printed

Question 6

Labor theory of value

Answer 6

the price of products depends on the amount of labor
employed in the production.

Question 7

Productivity

Answer 7

the quantity of goods from labor

Question 8

Utility

Answer 8

Basis of prices. Total satisfaction from goods.

Util- hypothetical measure of satisfaction

Question 9

Marginal utility

Answer 9

Added satisfaction from having more goods.
Diminishes fast.

Question 10

Law of demand

Answer 10

quantity demanded of a good falls when the price of the good rises.

Question 11

Demand schedule

Answer 11

a table that shows the relationship between the price of a good and the quantity demanded.

Question 12

Demand curve

Answer 12

a graph of the relationship between the price of a good and the quantity demanded.