← Economics 1-4 Test
5 Written Questions
5 Matching Questions
- Secondary effects
- Positive economics
- Fallacy of composition
- a The scientific study of "what is" among economic relationships.
- b A person who buys and sells goods or services or arranges trades. A middleman reduces transaction costs.
- c The indirect impact of an event or policy that may not be easily and immediately observable. In the area of policy, these effects are often both unintended and overlooked.
- d Human-made resources (such as tools, equipment and structures) used to produce goods and services. They enhance our ability to produce in the future.
- e erroneous view that what is true for the individual will always be true for the group.
5 Multiple Choice Questions
- Property rights that are exclusively held by an owner and protected against invasion by others. Private property can be transferred, sold, or mortgaged at the owner's discretion.
- An opinion based on personal preferences and value judgments.
- The branch of economics that focuses on how human behavior affects the conduct of affairs within narrowly defined units, such as individual households or business firms.
- Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
- Developing a theory from basic principles and testing it against events in the real world. Good theories are consistent with and help explain real world events. Theories that are inconsistent with the real world are invalid and must be rejected.
5 True/False Questions
Marginal → Human-made resources (such as tools, equipment and structures) used to produce goods and services. They enhance our ability to produce in the future.
Resource → The act of selecting among alternatives.
Transaction costs → The time, effort, and other resources needed to search out, negotiate and complete an exchange.
Property rights → The rights to use, control, and obtain the benefits from a good or service.
Rationing → The subjective benefit or satisfaction a person expects from a choice or course of action.