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Economics 1-4 Test

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5 Written Questions

5 Matching Questions

  1. Utility
  2. Transaction costs
  3. Subjective
  4. Property rights
  5. Macroeconomics
  1. a The subjective benefit or satisfaction a person expects from a choice or course of action.
  2. b The time, effort, and other resources needed to search out, negotiate and complete an exchange.
  3. c The rights to use, control, and obtain the benefits from a good or service.
  4. d An opinion based on personal preferences and value judgments.
  5. e The branch of economics that focuses on how human behavior affects outcomes in highly aggregated markets, such as the markets for labor or consumer products.

5 Multiple Choice Questions

  1. "other things constant" is used when the effect of one change is being described, recognizing that if other things changed, they also could affect the result. Economists often describe the effects of one change, knowing that in the real world, other things might change and also exert an effect.
  2. Allocating a limited supply of a good or resource among people who would like to have more of it. When price performs the rationing function, the good or resource is allocated to those willing to give up the most "other things" in order to get it.
  3. Term used to describe the effects of a change in the current situation. For example, a producer's marginal cost is the cost of producing an additional unit of a product, given the producer's current facility and production rate.
  4. Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
  5. An input used to produce economic goods. Land, labor, skills, natural resources, and capital are examples. Throughout history, people have struggled to transform available, but limited, resources into things they would like to have-economic goods.

5 True/False Questions

  1. Fallacy of compositionThe time, effort, and other resources needed to search out, negotiate and complete an exchange.

          

  2. ObjectiveAn opinion based on personal preferences and value judgments.

          

  3. MiddlemanTerm used to describe the effects of a change in the current situation. For example, a producer's marginal cost is the cost of producing an additional unit of a product, given the producer's current facility and production rate.

          

  4. MicroeconomicsThe branch of economics that focuses on how human behavior affects outcomes in highly aggregated markets, such as the markets for labor or consumer products.

          

  5. Normative economicsThe scientific study of "what is" among economic relationships.

          

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