Podcast
Questions and Answers
What is the principle that explains how price controls can have effects seen through other means in the market?
What is the principle that explains how price controls can have effects seen through other means in the market?
- Market equilibrium (correct)
- Law of Diminishing Returns
- Inflation
- Marginal Utility
What happens according to the Law of Diminishing Returns when a factory adds additional workers beyond the optimal level?
What happens according to the Law of Diminishing Returns when a factory adds additional workers beyond the optimal level?
- Profit margin increases
- Efficiency increases
- Efficiency decreases (correct)
- Output remains constant
Which term refers to the additional satisfaction gained from consuming one more unit of a commodity?
Which term refers to the additional satisfaction gained from consuming one more unit of a commodity?
- Marginal Product
- Marginal Benefit
- Marginal Utility (correct)
- Specialization
In a market economy, what does the Market Model focus on?
In a market economy, what does the Market Model focus on?
What is one of the advantages of specialization and trade in an economy?
What is one of the advantages of specialization and trade in an economy?
How does inflation impact the Production Possibilities Frontier (PPF) of an economy?
How does inflation impact the Production Possibilities Frontier (PPF) of an economy?
What does the 'what to produce' question in economics relate to?
What does the 'what to produce' question in economics relate to?
In economics, the 'how to produce' question involves deciding on:
In economics, the 'how to produce' question involves deciding on:
When considering 'for whom to produce' in economics, what is the main concern?
When considering 'for whom to produce' in economics, what is the main concern?
What would choosing more consumer goods over capital goods result in?
What would choosing more consumer goods over capital goods result in?
Why might a society choose to use more machines rather than human labor in production processes?
Why might a society choose to use more machines rather than human labor in production processes?
In a market economy, what does the term 'specialization and trade' refer to?
In a market economy, what does the term 'specialization and trade' refer to?
What is the premise behind the Theory of Absolute Advantage?
What is the premise behind the Theory of Absolute Advantage?
What does Comparative Advantage mean?
What does Comparative Advantage mean?
How is Absolute Advantage defined?
How is Absolute Advantage defined?
In the context of production, what does Opportunity Cost represent?
In the context of production, what does Opportunity Cost represent?
Why is it important for countries to trade based on their Comparative Advantage?
Why is it important for countries to trade based on their Comparative Advantage?
What is the core principle behind Specialization in trade?
What is the core principle behind Specialization in trade?
