5 Written questions
5 Matching questions
- Fallacy of composition
- Property rights
- Positive economics
- a The scientific study of "what is" among economic relationships.
- b An opinion based on personal preferences and value judgments.
- c erroneous view that what is true for the individual will always be true for the group.
- d The rights to use, control, and obtain the benefits from a good or service.
- e a fact based on observable phenomena that is not influenced by differences in personal opinion.
5 Multiple choice questions
- "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.
- 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.
- The subjective benefit or satisfaction a person expects from a choice or course of action.
- 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.
- Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
5 True/False questions
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.
Normative economics → The scientific study of "what is" among economic relationships.
Choice → Human-made resources (such as tools, equipment and structures) used to produce goods and services. They enhance our ability to produce in the future.
Middleman → 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.
Transaction costs → 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.