Question

iPad % 3:01 PM 1: 91% Spreadsheets A+ HO-OMP350-session1-Kit 5 Session the size of the economic pie: This situation is called A person or group not facing a rigorous market competition would control the market to maximize his or her own interest but to result in the inefficient allocation of resources as a whole: This is callecd .Principle 8: A Country's Standard of Living Depends on its Ability to Produce Goods and Services To boost living standards, policymakers need to raise by ensuring that workers are well have the tools needed to produce goods and services, and have access to the best available technology .Principle 9: Prices Rise When the Government Prints Too Much Money 51 What causes inflation? n almost all cases of large and persistent inflation, the culprit is the growth in the 10. Principle 10: Society Faces Short Run Trade Off Between Inflation and Unemployment Policymakers can exploit the short-run trade-off between inflation andusing various polic; 56 57 11. The production possibility frentier shows the combinations of output that the economy can possibly produce t shows the of one good as measured in terms of the other good 12. The farmer gets better f through trade with the rancher. ith the opportunity of trade, farmer had better produceounces of potatoes 59 and ounces of meat 13. Through trade, the farmer exchange his-ounces of potatoes for the rancher, 5。 meat Then, finally he can consurne ounces of potatoes and 5 ounces of meat. Before the trade, the farmer could consume only ounces of potatoes and 4 ounces of conelusion, through trade the rmer becomes to more consur combinat oth potatoes and meats than the ncher ose consumed before the trad rede The proposed trade between the farmer and the rancher offers each of Figure tion of meat and potatoes that would be impossible in the absence of trade. n panel (al. the farmer gets to corsume at point A" rather than peint A In panel b trade. How Trade Expands gets to consume at point8 rather than point 8. Trade allows each to the trad consume more memt poine a toint A rather more potatoes gets better off a) The Farmer's Preduton and Comsuption Meat louncs 71 72 73 80 60 The Galns from Trade A Summary 82 83 12 0 Wish Trade 85 86 87 幽 . Cell .Gains from Trade: Fill the red-colored cells

Answer 1

7. Monopoly. A monopolist is a price maker and there is inefficient allocation of resources. The monopolist will sell a lower quantity at a higher price.

8. Productivity. Productivity is the relationship between input and output.

9. Demand-pull inflation when there is excess demand over economic growth.

Cost-push inflation occurs when the increase in cost of production is passed on the consumers by the suppliers.

Quantity of money.

10. Unemployment.