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Chapter 1 and 2 (worksheet)
Terms in this set (58)
False it is to study how people allocate scarce resources to satisfy unlimited wants
(True or False) The main concern of economics is to study how well the stock markets are preforming.
False you study the actions and behaviors of the individual agents within an economy
(True or False) Microeconomics is the branch of economics in which you study inflation and unemployment in the economy.
(True or False) To an economist, individuals are acting "rationally" if they are striving to do their best to achieve their goals.
False this is a command economy
(True or False) In a market economy, government officials make the most production decisions in q centralized manner
False it does allocate resources
(True or False) In a market economy, prices help determine the distribution of goods and services but not the allocation of resources.
(True or False) There are four factors of production: Land, Labor, Capital, and Entrepreneurship
False this is a labor-intensive production
(True or False) Capital-intensive production techniques tend to be utilized most commonly in countries where labor is relatively cheap
False the individual is following rational behavior
(True or False) When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if they compare the total cost of consuming both the first and second slices with their total benefit before making a decision.
Studying how we allocate scarce resources to satisfy unlimited wants
Economics is most importantly concerned with...
Make the best use of scarce resources to satisfy our unlimited wants
The central question in economics is how to...
Resources are limited relative to wants
The problem of scarcity exists because...
Goods and services are produced and distributed in a world with limited resources
Economics is a social science that primarily explores how...
Macro focuses on the performance of the entire economy while micro concentrates on the behavior of individual consumers
The basic difference between macroeconomics(macro) and microeconomics(micro) is...
Microeconomics and Macroeconomics
Economics can be divided into what two main branches of study?
A decrease in the unemployment rate
Which of the following is most likely topic discussion in Macroeconomics?
The branch of economics that studies the aggregate decisions of all households and all firms is called...
An increase in labor costs will increase the additional cost of producing another airplane
What most likely lies within the realm of microeconomics?
Most people consider economics a....
Most of economics analysis assumes that people's actions are motivated by...
land, labor, capital, and entrepreneurial skills
An economy's resources consist of...
Improved education and on the job training
Additions to human capital can be made through...
Factors of production
Economic resources are also known as...
Chalkboards, overhead projectors, and the expertise of professors
In order for a student to acquire an education, many resources are required. Which of the following might be categorized as capital resources?
Not directly used to produce goods and seevice
Money is not considered to be an economic resource because it is...
The skill or knowledge of individuals
Human capital is...
What is a dump truck and example of?
15 points on the history exam
A student has only a few hours to prepare for two different exams this afternoon. The table shows alternative possible exam scores with three alternatives uses of the student's time. The opportunity cost of scoring a 94 on the economics exam rather than a 77 is...
What goods will be produced? How will goods be produced? Who will get the goods produced?
Three economic questions must be determined in all societies. What are they?
What, how, and for whom
A market system produces answers to what questions of a society?
Determine the most efficient way of using resources
A market economy depends on a market mechanism to...
By a central planning board
In a command economy, decisions about how to allocate resources are made...
No nation has a pure market economy
What is an example of a pure market economy?
Labor intensive production
The use of large amounts of labor relative to capital in an economy indicates...
Flow of goods, services, and payments between households and firms
The circular flow of economic activity is a model of the...
Businesses buy resources from households and households use their income from the sale of resources to buy goods and services from businesses
Which of the following best characterizes the circular flow of income?
In the circular flow diagram, goods and services flow in what direction?
In the circular flow diagram, payments for goods and services flow in what direction?
Households are demanders of products and suppliers of resources
In the simple circular flow model...
Rent, interest, and wages
What are examples of a payment made to households in exchange for the use of factors of production?
Interest, profits, rent, and wages and salaries
Capital, entrepreneurship, land, and labor are needed to produce goods and services. The respective payments for each of these factors of production are...
Currently, it is not possible to produce at what point?
C to F
And economy is operating at full employment, and then workers in the bread industry are laid off. This change is portrayed in the movement from what points?
The most inefficient point depicted is...
Sacrificing wine in order to produce a greater quantity of bread
A movement from point B to point C involves....
No sacrifice of output, as both more wine Ambria can be produced is available resources are used more efficiently
A movement from point G to point F involves...
Labor is unemployed or machinery is idle
And economy may be operating at a point inside the production possibilities curve is a substantial amount of either....
A tradeoff in which the opportunity cost of a good increases with the level of its production
A production possibilities curve that is "those out" or concave to the origin illustrates...
A technological advance that affects of both pizza and bicycle production
What is a possible explanation for the shift of the production possibilities curve illustrated?
An improvement in technology
What will shift a production possibilities curve outward?
California's production possibility curve shifts inward
A devastating earthquake destroys ten percent of the pollution in California. As a result...
There is a tech no logical advanced in food production but not in housing production
Assuming that the production possibility curve extend out further due to technological change, what is a possible observation?
A to C
Which move to the new production possibilities curve will result in more housing and food?
Businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses
What is a possible explanation that best characterizes the circular flow of income?
Revenues from households in exchange for providing goods and services and use those revenues to buy inputs from house
In the circular flow diagram model businesses receive...
Income from businesses in exchange for providing input and use that income to buy goods and services from business
In the circular flow diagram model households receive...
Regardless of whether you're looking through the microeconomics microscope or the macroeconomics telescope, the fundamental subject material of the interconnected _____ doesnt change.
Economics of sale
_____- A term referring to the fact that for many goods, as the level of production increases the average cost of producing each individual unit declines
Circular flow diagram
Economic models like the _____ are not physical models, but instead or diagrams or grass or even a mathematical equations that represent economic patterns or theories.
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