1. 1.Specialization is very important it allows the workers to have an advantage and focus on where they are good. 2.workers who specialize are more likely to price more at a faster pace in a good quality. Allow economic agents to take advantage of economies of scales.
2. Microeconomics is about specific roles (Examples: A Tree). Macroeconomics is focused on the economy as a whole (Example: A forest).
3. What are the three main goals of macroeconomics?
1. Everyone employed/ no unemployment
2. Have stable economic growth 3. prices to be stabled throughout economy
4. Goods and services market: buyers
Labor Market: Workers
5. Firms: Sellers in goods and service market of the economy. Firms: Buyers in a labor market
6. Market Economy. Traditional …show more content…
1. People are going to be consumed with themselves and are selfish. 2. Almost everyone has knowledge on the good and services they are purchasing.
Problems:
24.
25.
26.
27.
Chapter 3
Review Questions
12. Consumers
13.Demand goes down, while supply goes up.
14. Demand curves will always loose different from product to product. But they are similar in that they go left to right going down.
15. Supply curves from left to right and slope up.
16.
18. If its above=surplus, If its below=shortage
19. If the price is above equilibrium, it will move along the demand curve, thus trying to reach equilibrium.
22. They test each variable one at a time.
23. 1. Expectations 2. Income 3. Population
24. Taxes, Number of sellers, technology
25. By comparing the original price and quality and to the new shift price and quality point.
26. Supply curve movement is caused by the quantity then causes the change in price. Demand curve movement is caused when a change of the price the can cause quantity to change.
31. Consumer surplus is the total amount that buyer would have paid for a product – the real amount.
32. It’s the difference between what the producer wants to sell the actual product for vs. what the product is actually worth in
2. Microeconomics is about specific roles (Examples: A Tree). Macroeconomics is focused on the economy as a whole (Example: A forest).
3. What are the three main goals of macroeconomics?
1. Everyone employed/ no unemployment
2. Have stable economic growth 3. prices to be stabled throughout economy
4. Goods and services market: buyers
Labor Market: Workers
5. Firms: Sellers in goods and service market of the economy. Firms: Buyers in a labor market
6. Market Economy. Traditional …show more content…
1. People are going to be consumed with themselves and are selfish. 2. Almost everyone has knowledge on the good and services they are purchasing.
Problems:
24.
25.
26.
27.
Chapter 3
Review Questions
12. Consumers
13.Demand goes down, while supply goes up.
14. Demand curves will always loose different from product to product. But they are similar in that they go left to right going down.
15. Supply curves from left to right and slope up.
16.
18. If its above=surplus, If its below=shortage
19. If the price is above equilibrium, it will move along the demand curve, thus trying to reach equilibrium.
22. They test each variable one at a time.
23. 1. Expectations 2. Income 3. Population
24. Taxes, Number of sellers, technology
25. By comparing the original price and quality and to the new shift price and quality point.
26. Supply curve movement is caused by the quantity then causes the change in price. Demand curve movement is caused when a change of the price the can cause quantity to change.
31. Consumer surplus is the total amount that buyer would have paid for a product – the real amount.
32. It’s the difference between what the producer wants to sell the actual product for vs. what the product is actually worth in