5 Written questions
5 Matching questions
- Transaction costs
- Private-property rights
- Scientific thinking
- Secondary effects
- Property rights
- a 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.
- b The rights to use, control, and obtain the benefits from a good or service.
- c 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.
- 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 The time, effort, and other resources needed to search out, negotiate and complete an exchange.
5 Multiple choice questions
- The scientific study of "what is" among economic relationships.
- 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.
- 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.
- 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.
- "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.
5 True/False questions
Normative economics → The scientific study of "what is" among economic relationships.
Fallacy of composition → erroneous view that what is true for the individual will always be true for the group.
Utility → Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
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.
Scarcity → Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.