Индивидуальные консультации и отработки_Ситникова С.Е.

1: A market demand curve typically slopes downward from left to right due to two main factors: the **law of diminishing marginal utility** and the **substitution effect**.

1. **Law of Diminishing Marginal Utility**: As a consumer purchases more units of a good, the additional satisfaction (or utility) they get from each extra unit decreases. Therefore, consumers are willing to pay less for each additional unit, which results in a lower price being needed to increase quantity demanded.

2. **Substitution Effect**: When the price of a good decreases, it becomes relatively cheaper compared to other goods. As a result, consumers may substitute the cheaper good for others, increasing the quantity demanded of the good in question.

Together, these effects explain why, as the price of a good falls, the quantity demanded typically increases, leading to the downward slope of the demand curve.

2)2. Name some factors that could shift the demand curve out to the right?

Several factors can cause the demand curve to shift to the right, indicating an increase in demand. These factors include:

1. **Increase in consumer income**: When consumers' income rises, they are typically able to afford more goods and services, leading to an increase in demand for many products.

2. **Increase in population**: A growing population leads to more potential buyers, which increases the overall demand for goods and services.

3. **Change in consumer preferences**: If a good becomes more popular due to trends, advertising, or other factors, demand for that good will increase, shifting the demand curve to the right.

4. **Expectations of future price increases**: If consumers expect that prices will rise in the future, they may buy more of a product now, increasing current demand.

5. **Increase in the price of a complementary good**: If the price of a complementary good (e.g., printers for computers) rises, it can increase the demand for the original good (e.g., computers), shifting its demand curve to the right.

6. **Decrease in the price of a substitute good**: If the price of a substitute good falls, some consumers may shift their demand toward the good in question, increasing its demand.

7. **Government policies or subsidies**: If the government provides subsidies or tax cuts for certain goods, this can make the goods more affordable, thereby increasing demand.

These factors, alone or in combination, can lead to a rightward shift in the demand curve, signifying an increase in quantity demanded at every price level.

3. Why does a firm's supply curve normally slope up?

A firm's supply curve typically slopes upward from left to right due to the **law of increasing opportunity costs**. Here's why:

1. **Higher prices motivate greater production**: When the price of a good or service rises, it becomes more profitable for firms to produce and sell that good. As a result, firms are willing to supply more at higher prices to maximize profits. 

2. **Increasing marginal costs**: As production increases, firms often face higher marginal costs, particularly if they need to use less efficient resources or technologies to produce more output. To cover these increasing costs, firms require a higher price to be willing to supply additional quantities. 

Thus, as the price of a good increases, firms are incentivized to increase production, which results in the upward slope of the supply curve.

4. Name some factors that could shift the supply curve in to the left?

5. 5. What is the significance of the point where supply and demand curves intersect?

The point where the supply and demand curves intersect is called the **equilibrium point**, and it holds significant meaning in economics for several reasons:

1. **Equilibrium Price and Quantity**: The intersection represents the price at which the quantity demanded by consumers equals the quantity supplied by producers. This price is known as the **equilibrium price**, and the corresponding quantity is the **equilibrium quantity**. At this price, there is no excess demand or excess supply in the market.

2. **Market Efficiency**: At equilibrium, resources are allocated efficiently. There is no shortage (where demand exceeds supply) or surplus (where supply exceeds demand), and the market clears. Both buyers and sellers are satisfied with the price and quantity being exchanged.

3. **Signals for Producers and Consumers**: The equilibrium price serves as a signal for producers to know how much to produce and at what price, while it signals consumers about the cost of the good or service. Any deviation from this equilibrium price (due to shifts in demand or supply) can lead to market imbalances, influencing future production and consumption decisions.

In essence, the equilibrium point represents a stable state where the forces of supply and demand are in balance, ensuring an efficient distribution of goods and services in the market.

6:Explain why the market price may not be the same as the equilibrium price?

The market price may not always be the same as the equilibrium price due to **shifts in supply and demand** or **market disruptions**. Here are some common reasons for this discrepancy:

1. **Price Floors**: A **price floor** is a minimum price set by the government above the equilibrium price (e.g., minimum wage laws or agricultural price supports). When the market price is set above the equilibrium

7:. Explain why, if the price of a good is above the equilibrium price, the forces of supply and demand will tend to push the price toward equilibrium?

When the price of a good is above the equilibrium price, a **surplus** occurs, meaning that the quantity supplied exceeds the quantity demanded at that price. This imbalance creates forces that push the price toward equilibrium in the following ways:

1. **Excess Supply**: At a higher price, producers are willing to supply more of the good, but consumers are not willing to purchase as much. This results in an excess supply of the good in the market.

2. **Price Reduction**: To clear the surplus, producers will begin lowering the price in order to attract more buyers. As the price decreases, the quantity demanded by consumers increases, while the quantity supplied by producers decreases. This process continues until the market reaches the equilibrium price, where the quantity demanded equals the quantity supplied.

3. **Market Adjustments**: The competition between producers to sell their excess inventory and the desire to avoid unsold goods forces the price down. As the price falls toward the equilibrium, the market moves closer to balance, eliminating the surplus.

In summary, when the price is above equilibrium, market forces (particularly the actions of producers and consumers) will drive the price downward until it reaches the equilibrium level, where supply and demand are in balance.

8:8. Explain why, if the price of the good is below the equilibrium price, the market will tend to adjust toward equilibrium?

When the price of a good is below the equilibrium price, a **shortage** occurs, meaning that the quantity demanded exceeds the quantity supplied at that price. This imbalance creates forces that push the price toward equilibrium in the following ways:

1. **Excess Demand**: At a lower price, consumers are willing to buy more of the good, but producers are not willing to supply as much. This results in a shortage of the good, as there aren't enough units available to meet the demand at the given price.

2. **Price Increase**: In response to the shortage, producers recognize that they can sell their goods at a higher price because consumers are eager to purchase them. As producers raise the price, the quantity supplied increases (as producers are willing to offer more at the higher price), while the quantity demanded decreases (since fewer consumers are willing to buy at the higher price).

3. **Market Adjustments**: The competition among buyers to secure the good and the willingness of producers to supply more at higher prices drive the price upward. As the price rises, the quantity demanded starts to decrease, and the quantity supplied increases until the market reaches the equilibrium price, where demand equals supply.

In summary, when the price is below equilibrium, market forces (driven by consumer demand and producer supply behavior) will push the price up toward the equilibrium level, eliminating the shortage and restoring balance between supply and demand.

9. What is meant by the elasticity of demand?**Elasticity of demand** refers to the **responsiveness of the quantity demanded** of a good or service to a change in its price. In other words, it measures how much the quantity demanded changes when the price of the good changes.

There are two key types of price elasticity of demand:

1. **Price Elasticity of Demand (PED)**: This measures the percentage change in the quantity demanded in response to a 1% change in the price of the good.

   - **Elastic Demand**: If the quantity demanded changes by a greater percentage than the price change (i.e., demand is very responsive to price changes), the demand is considered **elastic** (PED > 1).

   - **Inelastic Demand**: If the quantity demanded changes by a smaller percentage than the price change (i.e., demand is not very responsive to price changes), the demand is considered **inelastic** (PED < 1).

   - **Unitary Elastic Demand**: If the quantity demanded changes by exactly the same percentage as the price change (i.e., demand is proportionally responsive), the demand is considered **unitary elastic** (PED = 1).

2. **Factors Affecting Elasticity of Demand**:

   - **Availability of Substitutes**: If there are many substitutes for a product, demand tends to be more elastic because consumers can easily switch to other goods if the price rises.

   - **Necessity vs. Luxury**: Necessities (like insulin or basic food items) tend to have inelastic demand because consumers still need to buy them even if prices rise. Luxuries (like designer clothes or vacations) tend to have elastic demand because people can forgo these items if the price increases.

   - **Time Period**: Over time, consumers may find more substitutes or change their behavior, making demand more elastic in the long run compared to the short run.

In summary, **elasticity of demand** is a measure of how much the quantity demanded changes in response to price changes. Understanding this concept helps businesses and policymakers predict consumer behavior in response to price changes and make more informed decisions.

10: If the elasticity of demand is 1, what happens to total revenue as the price increases? What if the demand for a product is very inelastic? What if it is very elastic?

When the **elasticity of demand** (PED) is 1, it is referred to as **unitary elasticity**. In this case, the percentage change in quantity demanded is exactly equal to the percentage change in price. Here's what happens to **total revenue** in different cases:

### 1. **Unitary Elasticity (PED = 1)**:

- When demand is **unitary elastic**, a change in price does not affect **total revenue**.

  - **Total Revenue** = Price × Quantity.

  - If the price increases, the decrease in quantity demanded is exactly proportional, so the total revenue remains unchanged.

  - Similarly, if the price decreases, the increase in quantity demanded exactly offsets the price reduction, keeping total revenue constant.

### 2. **Inelastic Demand (PED < 1)**:

- When demand is **inelastic** (i.e., the quantity demanded changes by a smaller percentage than the price change), an **increase in price** leads to an **increase in total revenue**.

  - Consumers are not very responsive to price changes, so even though the price increases, the quantity demanded decreases only slightly, resulting in higher total revenue.

  - **Total Revenue rises** as the price increases because the percentage drop in quantity demanded is smaller than the percentage increase in price.

### 3. **Elastic Demand (PED > 1)**:

- When demand is **elastic** (i.e., the quantity demanded changes by a larger percentage than the price change), an **increase in price** leads to a **decrease in total revenue**.

  - Consumers are very responsive to price changes, so when the price increases, the quantity demanded falls significantly, leading to lower total revenue.

  - **Total Revenue falls** as the price increases because the percentage decrease in quantity demanded is larger than the percentage increase in price.

### Summary:

- **Unitary Elastic (PED = 1)**: Total revenue stays the same when price changes.

- **Inelastic Demand (PED < 1)**: Total revenue increases when price increases.

- **Elastic Demand (PED > 1)**: Total revenue decreases when price increases.

Understanding elasticity helps businesses and policymakers make decisions about pricing to maximize revenue based on how sensitive consumers are to price changes.

1:b

2:c

3:b

4:d

Here’s the completed version of your summary with the appropriate terms filled in:

Understanding the concept of a market and the role it plays in the allocation of resources and the distribution of output is critical to an understanding of how economies function. (1) **Markets** communicate information to buyers and sellers alike. The forces of supply and demand, which are basic to every market, interact to produce a (2) **market price** that acts as a vehicle for communicating the wants of buyers to sellers. (3) **Supply and demand analysis** is a method of isolating the forces of supply and demand so that the factors determining market prices can be understood. This allows us to better understand the communication and rationing functions of the price system.

Demand constitutes amounts of goods and services that buyers are willing and able to buy at a given price during a given period. A (4) **demand schedule** is a table of data showing the relationship between the prices of a good and the associated quantities demanded, holding all other influencing factors unchanged. A (5) **demand curve** is a plot of the price-quantity demanded coordinates. The demand schedule and its demand curve show that price and quantity demanded are negatively related. This relationship is known as the law of (6) **demand**. When there is a change in price, quantity demanded changes. This is called a (7) **change in quantity demanded**. A change in demand determinants other than the price of the good will shift the demand curve. A shift in the demand curve means that, at a given price, quantity demanded will either increase or decrease. This is called a (8) **change in demand**. Changes in demand are caused by changes in (a) income, (b) wealth, (c) the prices of related goods, (d) price expectations, (e) tastes, and (f) the number of buyers in the market.

Supply represents the quantities that sellers are willing and able to produce and make available to the market at a given price during a given period. (9) A **supply schedule** is a table of data showing the relationship between the prices of a good and the associated quantities supplied by producers.

This should provide a clear summary of the chapter's content on market transactions, supply, and demand.

Here’s the completed version of your summary with the appropriate terms filled in:

Sellers, all other influences on supply remaining the same. A **(9) supply curve** is a plot of the price-quantity supplied coordinates. The relationship between price and quantity supplied is a positive one and is called the law of **(10) supply**. A **(11) change in quantity supplied** is caused by a price change. This is shown by a movement along a given supply curve. A **(12) change in supply** is the result of influences other than price, such as (a) the price of inputs, (b) prices of other goods, (c) technology, (d) price expectations, and (e) the number of sellers in a market. These nonprice influences shift the supply curve.

The forces of supply and demand interact to produce a market **(13) equilibrium**, or state of balance, where the quantities demanded by buyers are just equal to the quantities supplied by sellers. In a state of equilibrium, buyers and sellers have no incentive to alter levels of consumption or production. It is the market **(14) price** that equates the quantities supplied and demanded.

A price above a market equilibrium price results in a **(15) surplus** because the quantity supplied at this price exceeds the quantity demanded. A price below the equilibrium price causes a **(16) shortage** because the quantity demanded exceeds the quantity supplied. In a competitive market, a seller tries to get rid of surpluses by **(17) cutting prices**. Falling prices will reduce surpluses. When the price falls enough to equal the market equilibrium price, the **(18) surplus** is eliminated completely. Shortages require some form of rationing. Sellers ration the limited supply of goods among competing buyers by **(19) increasing** prices. But price increases reduce the quantities demanded and increase the quantities supplied, which in turn reduce the shortage. Shortages are completely eliminated when the price has risen **(20) above** the market equilibrium price.

Market prices remain unchanged in a competitive market unless the underlying forces of supply or demand change. A change in demand, a change in supply, or a change in **(21) demand** can alter the market **(22) quantity**.

---

This version now fully explains the interactions of supply and demand and the effects on equilibrium, price, surplus, and shortage, including how market forces drive these changes. Let me know if you need more assistance!

1. Why does a market demand curve normally slope down?

The market demand curve slopes downward due to the law of demand. This law states that, all other factors being equal (ceteris paribus), as the price of a good or service increases, the quantity demanded decreases, and vice versa. There are two main reasons for this:

Substitution effect: As the price of a good rises, consumers may switch to cheaper substitutes.

• Income effect: As the price of a good rises, consumers' purchasing power decreases (their real income falls), leading them to buy less of all goods, including the good whose price has increased.

2. Name some factors that could shift the demand curve out to the right (increase in demand):

A rightward shift of the demand curve means that at any given price, consumers are willing and able to buy more of the good. Factors causing this include:

Increased consumer income (for normal goods): Consumers can afford to buy more.

• Increased consumer preferences: The good becomes more desirable.

• Increased prices of substitute goods: Consumers switch from substitutes to the good in question.

• Decreased prices of complementary goods: Consumers buy more of the complement, leading to increased demand for the good.

• Increased consumer expectations (expecting higher future prices): Consumers buy more now to avoid paying more later.

• Increased population: A larger population leads to higher overall demand.

3. Why does a firm’s supply curve normally slope up?

The firm's supply curve slopes upward due to the law of supply. This law states that, all other factors being equal (ceteris paribus), as the price of a good or service increases, the quantity supplied increases, and vice versa. This is because:

• Profit motive: Higher prices make production more profitable, encouraging firms to increase their output.

• Increasing marginal costs: As firms produce more, they often face increasing marginal costs (the cost of producing one more unit). They need a higher price to justify this increased cost.

4. Name some factors that could shift the supply curve in to the left (decrease in supply):

A leftward shift of the supply curve means that at any given price, firms are willing and able to supply less of the good. Factors causing this include:

• Increased input costs: Higher prices for raw materials, labor, or other inputs make production more expensive, reducing profitability and supply.

• Technological setbacks: A decrease in technology reduces productivity, decreasing supply.

5. What is the significance of the point where supply and demand curves intersect?

The point where the supply and demand curves intersect is called the equilibrium point. This point represents the market equilibrium price and quantity. At this price, the quantity demanded by consumers equals the quantity supplied by producers; the market clears. There is neither a shortage nor a surplus.

6. Explain why the market price may not be the same as the equilibrium price.

The market price may deviate from the equilibrium price in the short run due to several reasons:

• Unexpected changes in supply or demand: A sudden event (e.g., a natural disaster or a change in consumer tastes) can temporarily disrupt the market.

• Government intervention: Price controls (price ceilings or price floors) can prevent the market from reaching equilibrium.

7. Explain why, if the price of a good is above the equilibrium price, the forces of supply and demand will tend to push the price toward equilibrium.

If the price is above equilibrium, there will be a surplus (quantity supplied exceeds quantity demanded).  Producers will have unsold goods, putting downward pressure on the price as they compete to sell their inventory. Consumers will only buy the quantity they want at that higher price, leading to a decrease in the quantity demanded.  These forces will continue to push the price down until the equilibrium is reached.

8. Explain why, if the price of the good is below the equilibrium price, the market will tend to adjust toward equilibrium.

If the price is below equilibrium, there will be a shortage (quantity demanded exceeds quantity supplied).  Consumers will compete for limited goods, putting upward pressure on the price. Producers, seeing strong demand, will want to increase their quantity supplied which also pushes the price up.  These forces will continue to push the price up until the equilibrium is reached.

9. What is meant by the elasticity of demand?

The elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price.  More specifically, it's the percentage change in quantity demanded divided by the percentage change in price.

• Elastic demand: A small price change leads to a large quantity change (elasticity > 1).

• Inelastic demand: A small price change leads to a small quantity change (elasticity < 1).

• Unit elastic demand: A price change leads to an equal quantity change (elasticity = 1).

10. If the elasticity of demand is 1, what happens to total revenue as the price increases? What if the demand for a product is very inelastic? What if it is very elastic?

• Elasticity of 1 (unit elastic): Total revenue remains unchanged when the price increases. A price increase is exactly offset by the decrease in quantity demanded.

• Very inelastic demand: Total revenue increases when the price increases.  The percentage decrease in quantity demanded is smaller than the percentage increase in price.

• Very elastic demand: Total revenue decreases when the price increases. The percentage decrease in quantity demanded is larger than the percentage increase in price.

1. (b) very inelastic.

2. (c) inelastic

3. (b) increases the price elasticity of demand.

4. (b) either increase or decrease.

topic 3

1-Markets

2-market price

3-Supply and demand analysis

4-demand schedule

5-demand curve

6-demand

7-change in quantity demanded.

8-change in demand

9-supply schedule

10-supply curve

11-supply

12-change in quantity supplied

13-change in supply

14-equilibrium

15-price

16-surplus

17-shortage

18-cutting prices

19-surplus

20-increasing

21-above

22-can

Here are the completed definitions based on the context:

1. **Relative Price**: An increase or decrease in the price of a good relative to an average of the prices of all goods. This refers to how the price of one good compares to others in the market.

2. **Demand Curve**: A graph that shows how quantity demanded varies with the price of a good. It illustrates the relationship between the price of a good and the amount consumers are willing to purchase.

3. **Supply Schedule**: A table that shows how the quantity supplied of a good is related to the price. It lists different prices and the corresponding quantities that sellers are willing to produce and sell at those prices.

4. **Supply**: The quantity of a good sellers are willing and able to make available in the market over a given period at a certain price, other things being equal.

5. **Supply Curve**: A relationship between the price of an item and the quantity supplied by sellers. It is typically upward sloping, indicating that higher prices lead to greater quantities supplied.

6. **Law of Supply**: Other things being equal, the higher the price of a good, the greater the quantity of that good sellers are willing and able to make available over a given period.

7. **Market**: An arrangement through which buyers and sellers meet or communicate for the purpose of trading goods or services. This could refer to a physical marketplace or an online platform where transactions occur.

8. **Market Mechanism**: Explains how prices are established in markets through competition among many buyers and sellers, and how those prices affect the quantities traded. It refers to how supply and demand interact to determine equilibrium prices and quantities.

These definitions cover key concepts in economics related to supply, demand, and how markets function. Let me know if you need further clarification!

1. Price level: average of the prices of all goods.

2. Price: price of a good.

3. Price-related: related to the price.

4. Market: an arrangement through which buyers and sellers meet or communicate for the purpose of trading goods or services.

5. Quantity supplied: the quantity of a good sellers are willing and able to make available in the market over a given period at a certain price, other things being equal.

6. Given period: given period.

7. Law of supply: other things being equal, the higher the price of a good, the greater the quantity of that good sellers are willing and able to make available over a given period.

8. Supply and demand model: explains how prices are established in markets through competition among many buyers and sellers, and how those prices affect the quantities traded.

9. Change in supply: a change in the relationship between the price of a good and the quantity supplied in response to a supply determinant other than the price of the good.

10. Change in quantity supplied: a change in the amount of a good sellers are willing to sell in response to a change in the price of the good.

11. Change in demand: a change in the relationship between the price of a good and the quantity demanded caused by a change in a demand determinant other than the price of the good.

12. Complement goods: goods whose use together enhances the satisfaction a consumer obtains from each.

13. Substitute goods: goods that serve a purpose similar to that of a given good.

14. Supply curve: a graph that shows how the quantity supplied varies with the price of a good.

15. Law of demand: other things being equal, the lower the price of a good, the greater the quantity of that good buyers are willing and able to purchase over a given period.

16. Demand schedule: a table that shows how the quantity demanded of a good would vary with price, given all other demand determinants.

17. Demand curve: a graph that shows how quantity demanded varies with the price of a good.

18. Quantity demanded: the amount of an item the buyers are willing and able to purchase over a period at a certain price, given all other influences on their decision to buy.

Here are the terms and definitions you provided:

9. **Supply shift**: A change in the relationship between the price of a good and the quantity supplied in response to a supply determinant other than the price of the good.

10. **Quantity demanded**: A change in the amount of a good buyers are willing and able to buy in response to a change in the price of the good.

11. **Demand shift**: A change in the relationship between the price of a good and the quantity demanded caused by a change in a demand determinant other than the price of the good.

12. **Complementary goods**: Goods whose use together enhances the satisfaction a consumer obtains from each.

13. **Substitute goods**: Goods that serve a purpose similar to that of a given good.

14. **Supply curve**: A graph that shows how the quantity supplied varies with the price of a good.

15. **Law of demand**: Other things being equal, the lower the price of a good, the greater the quantity of that good buyers are willing and able to purchase over a given period.

16. **Change in quantity supplied**: A change in the amount of a good sellers are willing to sell in response to a change in the price of the good.

17. **Demand curve**: A relationship between the price of an item and the quantity demanded.

18. **Demand schedule**: A table that shows how the quantity demanded of a good would vary with price, given all other demand determinants.

19. **Quantity demanded at a specific price**: The amount of an item the buyers are willing and able to purchase over a period at a certain price, given all other influences on their decision to buy.

Let me know if you need any further clarifications!

topic 2

1. Production is the process of using economic resources or inputs in order to produce output. Economic resources consist of labor, (2) capital, natural resources, and entrepreneurship. The quantity and productivity of economic resources and the extent and efficiency with which they are employed determine the output potential of a nation during a given period of time. Constraints in the availability or use of resources represent the (3) scarcity confronting nations. (4) Technology allows us to delay the sacrifices implied by scarce resources by increasing the productivity of resources. Improvements in resource productivity mean that a nation can produce more output with a given endowment of resources.

A (5) production possibilities curve is a convenient tool for showing the implications of scarce resources. Assuming (a) a given quantity and productivity of resources, as well as a given state of the art with respect to technology and (b) full and efficient employment of resources, it can be shown that a nation can produce more of one class of goods only by (6) sacrificing the production of other goods. That sacrifice is a nation's (7) opportunity cost of producing more of a given good. As a nation produces more of a good, the opportunity cost (8) rises because resources that are increasingly (9) less productive must be transferred from the production of other goods. This implies that a given increase in the production of one good will require ever (10) larger reductions in output of other goods. The law of increasing costs exists because some resources (11) are not equally adaptable to all employments.

A point on the production possibilities curve represents a combination of the classes of goods in question where output is at a maximum. A point inside the curve implies either (12) unemployed resources or (13) inefficiently employed resources. A point outside the curve represents a combination of goods that is (14) unattainable in the short run. But with an increase over time in the quantity and productivity of resources, together with improvements in technology, a point outside the curve is attainable in the long run.

Maximum production is attainable in the short run when resources are employed fully and efficiently. Productive efficiency means that a nation (15) cannot reallocate resources among the production of goods and services and achieve a gain in the output of one good only by causing a reduction in the output of another. Specialization and the division of labor are critical for the attainment of maximum productive efficiency. The process of economic growth can be shown as an (16) outward shift over time in the production possibilities curve. A nation can generally produce more of all goods over time as long as it experiences resource growth and improvement in the quality of resources and technology. A nation's growth is influenced by its willingness to forgo some (17) current production of consumable output so that resources can be used for the production of (18) capital. Production of capital today increases the production possibilities in the future not only by increasing the quantity of capital but also by increasing the productivity of other resources.

1. Factors of production: the inputs used in the process of production.

2. Division of labor: the specialization of workers in particular tasks that are part of a larger undertaking to accomplish a given objective.

3. Capital: the equipment, tools, structures, machinery, vehicles, materials, and skills created to help produce goods and services.

4. Production possibilities curve (PPC): shows the maximum possible output of one good that can be produced with available resources given the output of the alternative good over a period.

5. Entrepreneurship: the talent to develop products and processes and to organize production of goods and services.

6. Economic growth: the expansion in production possibilities that results from increased availability and increased productivity of economic resources.

7. Technology: the knowledge of how to produce goods and services.

8. Labor: physical and mental efforts of human beings in the production of goods and services.

9. Production efficiency: attained when the maximum possible output of any one good is produced given the output of the other goods. At this point it is not possible to reallocate economic resources to increase the output of any single good or service without decreasing the output of some other good or service.

10. Land: acreage and the physical terrain to locate structures, ports, and other facilities; also, natural resources that are used in crude form in production.

11. Law of increasing costs: the opportunity costs of extra production of any one good in an economy will increase as more and more specialized resources best suited for the production of other goods are reallocated away from their best use.

Here is the completed text with the appropriate terms filled in:

---

**(0)** **Production** is the process of using economic resources or inputs in order to produce output. Economic resources consist of labor, **(2)** **capital**, natural resources, and entrepreneurship. The quantity and productivity of economic resources and the extent and efficiency with which they are employed determine the output potential of a nation during a given period of time. Constraints in the availability or use of resources represent the **(3)** **scarcity** confronting nations. **(4)** **Technology** allows us to delay the sacrifices implied by scarce resources by increasing the productivity of resources. Improvements in resource productivity mean that a nation can produce more output with a given endowment of resources.

A **(5)** **production possibilities** curve is a convenient tool for showing the implications of scarce resources. Assuming (a) a given quantity and productivity of resources, as well as a given state of technology, and (b) full and efficient employment of resources, it can be shown that a nation can produce more of one class of goods only by **(6)** **sacrificing** the production of other goods. That **(7)** **opportunity cost** of producing more of a given good **(8)** **rises** because resources that are **(9)** **less** productive must be transferred from the production of other goods. This implies that a given increase in the production of one good will require ever **(10)** **larger** reductions in output of other goods. The law of **(11)** **increasing costs** exists because resources are not equally adaptable to all employments.

A point on the production possibilities curve represents a combination of the classes of goods in question where output is at a maximum. A point inside the curve implies either **(12)** **unemployed** resources or **(13)** **inefficiently** employed resources. A point outside the curve represents a combination of goods that is **(14)** **unattainable** in the short run. But with an increase over time in the quantity and productivity of resources, together with improvements in technology, a point outside the curve is attainable in the long run.

Maximum production is attainable in the short run when resources are employed fully and efficiently. Productive efficiency means that a nation **(15)** **cannot** reallocate resources among the production of goods and services and achieve a gain in the output of one good only by causing a reduction in the output of another. Specialization and the division of labor are critical for the attainment of maximum productive efficiency.

The process of economic growth can be shown as an **outward** shift over time in the production possibilities curve. A nation can generally produce more of all goods over time as long as it experiences resource growth, an improvement in the quality of resources, and technology. A nation's **economic** growth is influenced by its willingness to forgo some **current** production of consumable output so that resources can be used for the production of **capital**. Production of capital today increases the production possibilities in the future not only by increasing the quantity of capital but also by increasing the productivity of other resources.

Here are the definitions filled in:

1. **Resources**: The inputs used in the process of production.

2. **Division of labor**: The specialization of workers in particular tasks that are part of a larger undertaking to accomplish a given objective.

3. **Capital**: The equipment, tools, structures, machinery, vehicles, materials, and skills created to help produce goods and services.

4. **Production possibilities curve (PPC)**: Shows the maximum possible output of one good that can be produced with available resources, given the output of the alternative good over a period.

5. **Entrepreneurship**: The talent to develop products and processes and to organize production of goods and services.

6. **Economic growth**: The expansion in production possibilities that results from increased availability and increased productivity of economic resources.

7. **Technology**: The knowledge of how to produce goods and services.

8. **Labor**: The physical and mental efforts of human beings in the production of goods and services.

9. **Efficiency**: Attained when the maximum possible output of any one good is produced, given the output of the other goods. At this point, it is not possible to reallocate economic resources to increase the output of any single good or service without decreasing the output of some other good or service.

10. **Land**: Acreage and the physical terrain to locate structures, ports, and other facilities; also, natural resources that are used in crude form in production.

11. **Law of increasing opportunity costs**: The opportunity costs of extra production of any one good in an economy will increase as more and more specialized resources best suited for the production of other goods are reallocated away from their best use.

Saeideh soltani nejad

group642

general medicine

please  i  need  to  get  atrabutka  for  economic  and  im  6th  year  student  🙏🏻