ECON 2000 : Exam 1 Review
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______economics___________: the use of market prices and sales to signal desired output is ____market. Mechanism__(invisible hand)____________________________: ___________laissez- faire__by adam smith_______________ is the doctrine of leave it alone, of nonintervention by government in the market mechanism, an imperfection in the market mechanism that prevents optimal outcomes is known as. ___entrepreneurship- ability to put all factors of production together_______________________________________________________________________ The alternative combination of final goods and services that could be produced in a given time period with all available resources and technology. ____________________you lose 3 trucks , gain 2 boats____________________________________________________: complete the table below by calculating opportunity cost in forgone cups of coffee for each additional cup of tea: 1. 1: as tea output increases, opportunity costs _____increases________________, determine whether the following statements are normative or positive: ____positive___________ if the government raises the tax on beer, this will lead to a fall in profits of the brewers. _____normative___________ pollution is the most serious economic problem. ___positive_____________ higher interest rates will reduce house prices.
