Exchange in the Market
Supply and Demand
Supply factors of production
Demand factors of production
In an economy with many bu
Understand how price and the quantity of goods produced
are determined in the market economy
Comparative Advantage and Specialization
The economy is based on specialization and exchange in
First explore specializati
1. One of the primary difficulties economists faced in 1920s and 1930s when measuring the size
and strength of the economy was the issue of double counting the value of goods and services.
2. Microeconomics is a field of economics that covers topics such
A competitive market is one in which well-informed, price-taking buyers and sellers easily trade a
standardized good or service.
The personal likes and dislikes that make buyers more or less inclined to purchase a good are consumer
1. Which of the following price indexes does not use a fixed basket of goods and services?
2. Real variables allow us to compare value (such as wages) over time.
3. The value of a dollar:
- varies based on location
- changes as prices rise an
Evaluate a pricing decision your company (or any company, for that
matter) made that involved a product or service with fixed capacity. Do
you think price was set optimally? If not, why not? How would you
adjust the price, or would
Incentive pay can produce potential positive and negative consequences in performance measurement.
More organizations are bridging the gap in pay and benefits with incentive pay for their employees.