Simplified Handbook of
University of Arkansas, U.S. Department of Agriculture, and County Governments Cooperating
Revised and updated by Bobby Hall, program associate - Community and Economic Development, with the
Economic resources needed to make
goods and services are in limited supply.
To obtain more of one thing, society forgoes the opportunity of
getting the next best thing.
Picking your #1 choice and forgoing what you get from your #
Law of increasing opportunity cost
Law Increasing Opportunity Cost
As production of a good increases, the opportunity cost of producing an
additional unit rises.
What explains the bow shape of PPC?
Law increasing opportunity cost, all resour
McConnell Brue Flynn AP ECON Chapter 1
Study online at quizlet.com/_2hrxhe
scarcity: Economic resources needed to make goods and
services are in limited supply.
opportunity cost: To obtain more of one thing, society forgoes
the opportunity of gettin
Chapter 12 Pure Monopoly
1) One seller
2) No close substitutes for the good
3) Barriers to entry
4) Many buyers
2) and 3) give the firm market power
5) Firms are price searchers
One firm producing all of the markets ouptput
1. Economic growth produce more and better goods and services
2. Full employment suitable jobs for all citizens who are willing and able to work
3. Economic efficiency achieve the maximum production using available resources
.Lecture 8: Elasticity: Lecture 8: Elasticity
2.Elasticity: A measure of sensitivity
4 types: Price Elasticity of Demand, Cross-Price Elasticity, Income Elasticity, and
Price Elasticity of Supply
3.Price Elasticity of Demand: A measure of sensitivity of t
ECON 1020: Homework 2
Module 2: Government Interventions
February 13, 2017
This is the homework assignment for Module 2. Each question is worth 1 point. There is only
one correct and best answer for each question. You can earn up to 25 points on a homewor
Monopolistic Competition = entry easy and exit, number of buyers
*also characterized by: relatively large number of sellers and differentiated products
-Monopolistic competitors advertise heavily
-the goal is to make price less of a
Characteristics of a Pure Monopoly:
Price Makers make america great again
Controls total quantity supplied, so they have considerable control over price
Confronts downsloping product demand curve
Can change product price by changing quantity produced
PURE MONOPOLY exists when a single firm is the sole producer of a product for which
there are no close substitutes
A monopoly is the opposite of a purely competitive market
Price Makers make america great again
Controls total quanti
Other things being equal, what will happen to automakers profits if they are able
to sell more vehicles using battery packs and thereby scale up battery production?
o The profits for the automakers would go up as long as the demand for
How could the receipt of new information about health implications of foods,
alcohol, and tobacco affect a consumer optimum?
o Consumer optimum is the point at which consumers reach maximum
satisfaction, relative to their income or budget and
If input prices had increased as firms entered the lithium industry in
response to rising demand, what would have been the shape of the long-run
o With this case, prices would have to be increased as a result of the
Why might regulatory agencies utilize labor more intensively than private firms?
o Regulatory agencies arent allowed to fire and hire as volume of work
necessitates. Once an employee is hired to a regulatory agency the agency
has committed to
Why do you suppose that a brand-new firm rarely begins as a publicly held
o The regulations held in the US are tough enough already that it makes it
difficult for already successful proprietorships and partnerships from
If the industry sales shares of the top four publishers in Figure 26-5 remained
unchanged, but the remaining firms merged to form a single company, would the
four-firm concentration ratio change? Would the HHI change? Explain.
o Yes, the four
Why do you suppose that some publishers are selling space for advertisements in
their e-books and sometimes even in physical books?
o To add additional revenue to the book. If there is blank or open space
available why not use it to bring in
If the position of the demand curve for digital rock music albums has remained
unchanged, what can account for a continuing rise in the market clearing price?
o When the demand is unchanged, that means it has a lower supply and it
Under the cost minimization rule, when will a firm employ only human labor?
o Itll happen when the ratio of marginal product of human labor to price of
human labor is higher than the ratio of marginal product of capital and
price of capital
Why do you suppose that employment growth is about 20 percent greater in
unlicensed occupations than in licensed occupations?
o Most jobs where licensing is necessary means that a higher education or
more skills were required for that positio
Each question below is worth 3 points. Please put your first name, last name and student id on your paper. Turn
in the answers only.
1. If the CPI is 100 in the base year and 112 in the current year, how much did prices rise between the base year
ECON Monday 8/22
Terms and espressions to learn:
demand and supply;
What is econ
econ is the study of how people, orgs and govs allocate their limited resources in an attempt to satisfy their wants
econ is the study of choices among vari
Look up gdp
Labor force participation rate
Cost push inflation
Cost pull inflation
Anticipated inflation causes fewer problems than unanticipated inflation
Because of the way discouraged workers and part tim e employment are measured .unemplo
Please remember to put your first and last name and your student id on your paper.
Turn in the answers (a,b,c,.) only.
Which of the following is counted in GDP?
a. the trading of 100 shares of Microsoft stock
b. the services of a real estate broker
3. The reason why I think that wage rates did not rise before was because businesses and the
economy forced businesses to have a time to recover. The companines couldnt afford to pay the
workers a better pa
Defining Air Quality: The
Air quality in the U.S. and other nations is
defined through standards that set limits
on _ pollutants
Anthropogenic pollutants are
contaminants associated with human
Chapter 18- Managing Municipal Solid Waste
Municipal solid waste (MSW): is the collection of aluminum cans, plastic
bottles, food scraps, lawn clippings, and consumer electronics
o Poses no direct threat to human, animal, or plant life.
o Unsanitary condi
Improving Air Quality:
Controlling Mobile Sources
1. Understanding Urban Air Problems
Measuring Urban Air Quality
EPA monitors the air in relatively large metropolitan
statistical areas (MSAs) and reports part of its
findings using the _(AQI)
Conventional Solutions to
1. Standards in Environmental Policy
Types of Environmental Standards
(1) Ambient standard a standard that designates the
_ of the environment to be achieved, expres