CHAPTER TWO ANSWERS TO ASSIGNMENTS FOR MASTERING KEY
Assignment 2.1 Answers
A production possibilities frontier represents the combination of two goods that can be
produced in a certain period of time, under the conditions of a given state of tec
CHAPTER 6: ASSIGNMENTS FOR MASTERING KEY IDEAS
Key Idea: Elasticity provides a technique for estimating the response of one variable to changes
in some other variable, and has numerous applications in economics.
List the elasticity conce
CHAPTER ONE ANSWERS TO CHAPTER QUESTIONS AND PROBLEMS
The United States is considered a rich country because Americans can choose
from an abundance of goods and services. How can there be scarcity in a land of
Abundance does not imply unlimi
CHAPTER TWO ASSIGNMENTS FOR MASTERING KEY IDEAS
Key Idea: The PPF is a framework used to examine production.
Tell what a production possibilities frontier represents.
Analyze what it means for the PPF to be bowed out from the origin (
CH. 6 ANSWERS TO ASSIGNMENTS FOR MASTERING KEY IDEAS
Assignment 6.1 Answers
Price elasticity of demand, price elasticity of supply, cross elasticity of demand, and
income elasticity of demand are the elasticity concepts covered in this chapter.
ANSWERS TO ASSIGNMENTS FOR MASTERING KEY IDEAS
Assignment 3.1 Answers
The law of demand states that there is an inverse relationship between the price of a
good and the quantity demanded of that good, ceteris paribus.
The law of demand holds beca
CHAPTER THREE ASSIGNMENTS FOR MASTERING KEY IDEAS
Key Idea: Markets have two sides. One side of a market is the demand side.
State the law of demand.
Draw a demand curve. Label each axis.
Describe why the law of demand holds.
CHAPTER ONE: ANSWERS TO ASSIGNMENTS FOR MASTERING KEY
Assignment 1.1 Answers
Economics is the science of how individuals and societies deal with the fact that wants
are greater than the limited resources available to satisfy those wants.
CHAPTER ONE: ASSIGNMENTS FOR MASTERING KEY IDEAS
Key Idea: Economics is the science of scarcity.
List three effects of scarcity.
Define utility and disutility.
State how economists divide r