Microeconomics,, 16th Canadian Edition
- Fill in the blanks to make the following statements correct.
a. An important insight by early economists was that an
economy based on free-market transactions is -
organizing. Adam Smith developed the idea that
benevolence, is the foundation of economic order.
b. Self-interested buyers and sellers respond to.
c. The three types of decision makers in any economy are
, , and.
d. Consumers are assumed to make decisions that will
their utility. Producers are assumed to make decisions
that will their profit.
e. Consumers and producers are assumed to weigh the costs
and benefits of their decisions at the. For example, for
a consumer, the benefit of buying “one more” unit of a
good must outweigh the of buying that unit.
- Fill in the blanks to make the following statements correct.
a. The allocation of different jobs to different people is
referred to as the of labour. The specialization within
the production process of a particular product is referred
to as the of labour.
b. When people specialize in their activities, it becomes
necessary for them to to obtain most of the things
they need or want.
c. Trade is facilitated by because it eliminates the
cumbersome system of barter.
d. The rapid reduction in both transportation and
communication costs has greatly contributed to the
