When a consumer engages in marginal analysis, she purchases additional units of a good until the value to the consumer of the next unit is zero.

When an economy is producing the mix of goods and services MOST desired by society, that economy is considered to have:

(Figure: Understanding Price Ceilings and Floors) In the market depicted in the graph, if the government sets a price of $25, there is a:

Free trade and the law of comparative advantage increase the standard of living for each person in a country.

Employers give stock options to full-time employees who have been on the job more than three years. Compensation in the form of stock options assumes that people:

Macroeconomics and microeconomics differ in that:

If a consumer is willing to pay $20 for a pizza, but the price of the pizza is $10, then the consumer surplus resulting from the customer’s purchase of the pizza is:

If a restaurant that traditionally has served only lunch and dinner wants to open for breakfast, which of these factors should it consider?

The graph we could draw to represent the combinations of two goods that are possible within a given society at full employment is a(n):

(Figure: Biscuits and Cookies PPFs) Greg and Melissa face the production possibilities frontiers shown for biscuits and cookies. When Melissa completely specializes in producing the good she has a comparative advantage in, she produces: