Chapter 1

Economists develop theories of __ concerning individuals (consumers, workers) and institutions (businesses, governments) engaged in the production, exchange and consumption of goods and services.

behaviour

Emerging market countries typically display which of the following characteristics?

Evident economic growth rates, Volatile domestic markets, Dependence on global markets

Emerging markets refer to economies that consist of a combination of the characteristics of the _____ market form yet still depend highly on _____ intervention to set the playing field in terms of _____ development specifically.

laissez-faire, government, infrastructure

Entrepreneurs and business owners promote progress by __.

selling ownership shares, paying interest, purchasing capital goods

Firms and resource suppliers, seeking to further their own _____ and operating within the framework of a highly competitive _____ system, will simultaneously, as though guided by an _____ hand, promote the public or social interest.

self-interest, market, invisible

From the list below, select all statements that can be classified as normative.

Covid vaccines should be available free of charge to all citizens, Developed countries ought to assist developing countries in allocating funds to combat climate change

Governments will also form part of the flow between the markets in terms of _____ and _____ from and to households and firms.

taxes, services

Households receive _____ from firms through the resource market, and businesses receive _____ from households through the product market.

income, revenue

If Amahle gets 40 utils of satisfaction from two drinks and 50 utils from three drinks, what is the marginal satisfaction of her third drink?

10 utils

In a market system, most property resources are owned by__.

private individuals and firms

In a market system, output will be distributed to consumers based on their _____ and _____ to pay the existing market price for goods and services.

ability, willingness

In a market system, production will be organized according to the combinations and ways that _____ the cost per unit of output.

minimize

In a market system, the goods and services produced at a continuing _____ will be produced, and those produced at a continuing _____ will not. 

profit, loss

In command systems such as those of the Soviet Union, the route for getting ahead was__.

through participation in the Communist party

In economics, an incremental or gradual change is also known as a(n) _____ change.

marginal

In macroeconomics, a(n) _____ is a collection of specific economic units treated as if they were one unit.

aggregate

In the market system, greater work skills and effort mean _____ production and higher _____.

greater, incomes

In which of the following ways can clearly defined property rights contribute to a market system?

Property rights encourage innovation by ensuring that intellectual property is protected, Property rights facilitate exchange and allow people to use their time in productive purposes, Property rights encourage investment, maintenance of property and economic growth

Inflation is a(n) __ topic.

macroeconomic

Laissez-faire capitalism is also referred to as _____ capitalism.

pure