5 Written Questions
5 Matching Questions
- Secondary effects
- Fallacy of composition
- a Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
- b erroneous view that what is true for the individual will always be true for the group.
- c The act of selecting among alternatives.
- d 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.
- e a fact based on observable phenomena that is not influenced by differences in personal opinion.
5 Multiple Choice Questions
- An opinion based on personal preferences and value judgments.
- 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 time, effort, and other resources needed to search out, negotiate and complete an exchange.
- "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.
- 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.
5 True/False Questions
Macroeconomics → 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.
Utility → The subjective benefit or satisfaction a person expects from a choice or course of action.
Capital → Human-made resources (such as tools, equipment and structures) used to produce goods and services. They enhance our ability to produce in the future.
Positive economics → The scientific study of "what is" among economic relationships.
Marginal → 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.