ECON 2000 : Econ 2000 Exam 1 Oloomi Key
Document Summary
Capital: machinery, factory, all goods used to make a product. Entrepreneurship: ability to put all the other factors together: define production possibilities: The alternative combination of final goods and services that could be produced in a given time period with all available resources and technology. What do you gain? 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. 7: as tea output increases, opportunity costs increases. Monday 11:30 12:30: determine whether the following statements are normative or positive: If the government raises the tax on beer, this will lead to a fall in profits of the brewers. Resources should be allocated by allowing the market mechanism to work freely. Our tax money is best spent on education. A rise in average temperatures will increase the demand for sun screen products.
