Unit 1 Flashcards
1
Q
goat milk business
A
a resource
2
Q
ppf curve bow outward
A
right
3
Q
opportunity cost of producing airplanes instead of ships
A
0.5 ships
4
Q
public service
A
roads and highways
5
Q
service by the govt.
A
roads
6
Q
which of the following occurs when consumer interest in purchasing a product rapidly decreases
A
high quantity of product
7
Q
how do firms solve the problem of an economic surplus
A
decrease prices to market equilibrium
8
Q
what are businesses within the producer surplus area willing to do
A
produce less for a lower price
9
Q
expenditure
A
wages
10
Q
supply decreases
A
shifts left
11
Q
why does production of one good require a sacrifice of another good
A
different goods require similar factors of production
