ECON 203 Chapter : Econ 203 Quiz Chapters 1 2
Document Summary
"ceteris paribus" is a latin expression that means "holding everything else constant. " "a tax cut will lead to higher inflation" is an example of a positive economic statement. Economics is primarily the study of: how to operate a business. corporate balance sheets and income statements. how to make money in the stock market. how choices are made because of scarcity. Which of the following is not a resource exchanged in the factor markets? land capital. All of the above are traded in the factor market. labor. The core of the economic problem is to: guarantee everyone on the planet a minimum level of food, shelter and clean water. eliminate scarcity. allocate limited resources among competing uses. increase the amount of leisure time available to people. Which of the following best distinguishes a "command economy" from a "market economy?" A command economy is more efficient than a market economy because decision making is centralized.
