5 Written questions
5 Matching questions
- Normative economics
- Fallacy of composition
- a erroneous view that what is true for the individual will always be true for the group.
- b a fact based on observable phenomena that is not influenced by differences in personal opinion.
- c 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.
- d Judgements about what ought to be in economic matters. They are views that cannot be proven false because they are based on value judgments.
- e The subjective benefit or satisfaction a person expects from a choice or course of action.
5 Multiple choice questions
- The time, effort, and other resources needed to search out, negotiate and complete an exchange.
- Human-made resources (such as tools, equipment and structures) used to produce goods and services. They enhance our ability to produce in the future.
- A person who buys and sells goods or services or arranges trades. A middleman reduces transaction costs.
- The branch of economics that focuses on how human behavior affects outcomes in highly aggregated markets, such as the markets for labor or consumer products.
- 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.
5 True/False questions
Scientific thinking → 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.
Scarcity → Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
Microeconomics → 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.
Property rights → 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.
Subjective → An opinion based on personal preferences and value judgments.