I. When supply equals demand for a product J. Also known as “The Low Hanging Fru
ID: 1133479 • Letter: I
Question
I. When supply equals demand for a product
J. Also known as “The Low Hanging Fruit Principle”
MATCHING (2 Points Each 26. Macroeconomics A. The greatest good for all involved. 27. Microeconomics B. The process of weighing the total expected costs against the total expected benefits. 28. Absolute Advantage C. A limited supply of a good coupled with a high demand for that good, result in an increase in the price of that good. 29 Cost Benefit Analysis 30. Incentive Principle D. Economics that focuses on the small picture of individual businesses. 31. Comparative Advantage Principle of Increasing Opportunity Cost 32 E. To predict people's behavior, a good place to start is by examining their incentives. 33. Scarcity Principle F. A situation in which one party can produce a Product at a lower opportunity cost than a competitor 34. The Efficiency Principle G. The economic study of the big picture to include national economy, etc. 35 The Equilibrium Principle H. A situation in which one party can produce a product at a lower cost per unit than any other entity, usually because of raw material location, etc.Explanation / Answer
26. G
(Macro means the economy as a whole)
27. D
(Micro means individual units)
28. H
(total advantage in terms of lower cost of production)
29. B
(B is the definition of cost benefit analysis)
30. E
(E is the definition of incentive principle)
31. F
32. J. Also known as “The Low Hanging Fruit Principle”
33. C
34. A
35. I. When supply equals demand for a product
(all of the above are the definitions of the respective principles)