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In the  _________________, households work and recieve payment from firms.

In a __________________________, most economic decisions about what to produce, how to produce it and for whom to produce it are made by buyers and sellers.

Refer to the table in the previous question.  . A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student’s time. The opportunity cost of scoring an 84 on the history exam rather than 76 is:

When most people want to know the cost of an item or a service, they look for a price tag. When economists want to determine cost, they go one step further. They use the idea of opportunity cost. Explain the concept of opportunity cost and illustrate with an example.  Remember to use your own words.  Your example can be about you or about a situation you see around you. 

Philosophers draw a distinction between__________________, which describe the world as it is, and normative statements, which describe how the world should be.

The model that economists use for illustrating the process of individual choice in a situation of scacity is the ___________________, sometimes also called the opportunity set, a diagram which shows what choices are possible.

The leader of a federal political party made the following campaign promise: “My administration will increase national defense without requiring sacrifices elsewhere in the economy.” The promise can be kept if: 

Attending college is a case where the ________________ exceeds the monetary cost. 

Most real-world choices aren’t about getting all of one thing or another, instead, most choices involve_____________________, which involves comparing the benefits and costs of choosing a little more or less of a good

the lesson of ________________ is to forget about the money that’s irretrievably gone and instead to focus on the marginal costs and benefits of future options