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- Multiple ChoicePlease save your changes before editing any questions.
The cost of time and information needed to carry out market exchange.
Shortage
Transaction Costs
Role of Prices
Market Costs
- Multiple ChoicePlease save your changes before editing any questions.
A minimum legal price below which a product cannot sold.
Transaction Costs
Price Cieling
Supply
Price Floor
- Multiple ChoicePlease save your changes before editing any questions.
At a given price, the amount by which quantity demanded exceeds quantity supplied; a shortage usually forces the price up
shortage
supply
Market
demand
- Multiple ChoicePlease save your changes before editing any questions.
A maximum legal selling price above which a product cannot be sold.
Consumer Surplus
Price Floor
Absolut Advantage
Price Ceiling
- Multiple ChoicePlease save your changes before editing any questions.
When quantity consumers are willing and able to buy equals the quantity producers are willing and able to sell.
Surplus
Market Equilibrium
Invisible Hand
Market exchange
- Multiple ChoicePlease save your changes before editing any questions.
It plays an important role in facilitating exchange.
Money
Barter
selling
Division of Labor
- Multiple ChoicePlease save your changes before editing any questions.
Occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive
Absolute Advantage
Specialization
Consumer Surplus
Exchange
- Multiple ChoicePlease save your changes before editing any questions.
A system of exchange in which products are traded directly for other products.
Barter
selling
Price Ceiling
Money
- Multiple ChoicePlease save your changes before editing any questions.
Organizes the production process so that each worker specializes in a separate task.
Productivity
Law of Comparative Advantage
Division of Labor
Absolute Advantage
- Multiple ChoicePlease save your changes before editing any questions.
The ability to make something using fewer resources than other producers require.
Absolute Advantage
Law of Comparative Advantage
Specialization
Productive Efficiency
- Open EndedPlease save your changes before editing any questions.
Give the three medium of exchange.
- Open EndedPlease save your changes before editing any questions.
How is Division of Labor possible in increasing the productivity? (10Points)
- Open EndedPlease save your changes before editing any questions.
Briefly explain an increase in supply and a decrease in supply. (3points)
- Open EndedPlease save your changes before editing any questions.
Briefly explain an increase in demand and a decrease in demand. (4 points)