Answer the following questions in your own words:
1. Why does the fact that something is scarce require that we make choices?
When something is scarce it may not always be available, so we must make a decision on whether we gain
Study Guide Exam 1
What is microeconomics?
What is macroeconomics?
What is scarcity?
Can products be created or services be provided at no cost? If so, how?
Which people face scarcity?
Human wants are unlimited and their desires are unlimited.
What are th
1- Measures of the price level include:
Consumer Price Index (retail prices): The cost of the market basket in the
current period is then compared with the
cost in the base period.
Producer Price Index (wholesale prices): The Producer Price Index (PPI) me
1.- Because here in America the economy is good meanwhile on other countries where the
economy is not so good they have to put brooms than heavy duty machines because that
what they can afford
2.- the question is How are these goods and services to be pro