5 Written Questions

1. the increasing integration of economics, cultures, and institutions across the world
2. a time when technology and machines rapidly modernized industrial production and mass-produced goods replaced handmade goods
3. quantity of a good is directly related to the good's price. as the price goes up, so too does the quantity supplied
4. an economic policy of leaving coordination of individuals' actions to the market
5. a commonly held economic insight stated as a law or general assumption

5 Matching Questions

1. production possibility curve (PPC)
2. price floor
3. input
4. law of one price
5. inefficiency

1. a what you put into a production process to achieve an output
2. b getting less output from inputs that, if devoted to some other activity, would produce more output
3. c graphic representation. a curve measuring the maximum combination of outputs that can be obtained from a given number of inputs
4. d government-imposed limits on how low a price can be charged
5. e the wages of workers in one country will not differ significantly from the wages of (equal) workers in another institutionally similar country

5 Multiple Choice Questions

1. a private producing unit in our society
   1. socialism
   2. theorem
   3. business
   4. input
2. an economic system based on the market in which the ownership of the means of production resides with a small group of individuals called capitalists
   1. scarcity
   2. externality
   3. equilibrium
   4. capitalism
3. the control a private individual or firm has over an asset
   1. private property rights
   2. free rider
   3. microeconomics
   4. positive economics
4. a good that if supplied to one person must be supplied to all and whose consumption by one individual does not prevent its consumption by another individual
   1. equilibrium
   2. private good
   3. public good
   4. profit
5. the consumer's wishes determine what's produced
   1. economic institutions
   2. scarcity
   3. monopoly power
   4. consumer sovereignty

5 True/False Questions

1. e-commerce → buying and selling over the Internet

   True        False

2. movement along a demand curve → the graphical representation of the effect of a change in price on the quantity demanded

   True        False

3. art of economics → the application of the knowledge learned in positive economics to the achievement of the goals one has determined in normative economics

   True        False

4. economic policy → a framework that places the generalized insights of the theory in a more specific contextual setting

   True        False

5. minimum wage laws → laws specifying the lowest wage a firm can legally pay an employee

   True        False