St. Philips College

ECON 101

Chapter1

1)The market mechanism may best be defined as:

2. Economics is the study of how:

3. The study of microeconomic theory focuses on the:

4. The ceteris paribus assumption:

5. A linear curve that slopes downward from left to right has a:

6. Capital, as economists use the term, refers to:

7. The doctrine of laissez faire is based on the belief that:

8. A linear curve with a positive slope:

9. If an economy experiences increasing opportunity costs with respect to two goods, then the production-possibilities curve between the two goods will be:

10. In a market economy, the question of WHAT to produce is answered by:

11. Society cannot produce this combination with existing resources and technology. (See Figure 1.1.)

12. Factors of production are:

13. Macroeconomics focuses on the performance of:

14. The production-possibilities curve illustrates that:

15. Economics can be defined as the study of:

16. Long-run economic growth would best be represented by a:

17. The law of increasing opportunity costs explains:

18. A linear curve can be distinguished by: