1. What forces resource owners to use their resources to promote the highest possible satisfaction of society?
2. Prices increase when more is desired, as well as when less is desired?
3. Economic models start by assuming that decisions are made rationally under conditions of scarcity
4. The third step in the scientific model is?
Rethinking the model
Observations are recorded
The tests of hypotheses are then performed using gathered facts and data.
A theory is then developed to explain behavior or the phenomena or predict future behavior.
5. Equilibrium occurs when
Supply is greater then demand.
Demand is greater then supply.
Supply and demand are equal.
6. Economics explains how scarce resources are allocated among competing alternative uses to satisfy unlimited human wants.
7. What factor does not affect the demand for medical care?
8. Market failure forces resource owners to use their resources to promote the highest possible satisfaction of society.
Recognizes the role of alternatives.
Accomplishes its tasks through a system of prices, or the invisible hand.
Addresses the problem of limited resources and the need to make choices.
10. Inefficient outputs use scarce resources to promote social welfare, where as efficient output wastes resources