5 Written questions
5 Matching questions
- Private-property rights
- "Ceteris paribus"
- Property rights
- a The rights to use, control, and obtain the benefits from a good or service.
- b Human-made resources (such as tools, equipment and structures) used to produce goods and services. They enhance our ability to produce in the future.
- c "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.
- d 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.
- 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
- 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.
- 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.
- A person who buys and sells goods or services or arranges trades. A middleman reduces transaction costs.
- The subjective benefit or satisfaction a person expects from a choice or course of action.
- The scientific study of "what is" among economic relationships.
5 True/False questions
Scarcity → Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
Normative economics → The scientific study of "what is" among economic relationships.
Subjective → An opinion based on personal preferences and value judgments.
Rationing → 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.
Transaction costs → The time, effort, and other resources needed to search out, negotiate and complete an exchange.