5 Written questions
5 Matching questions
- Secondary effects
- Scientific thinking
- a Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
- b 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.
- c 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.
- d Human-made resources (such as tools, equipment and structures) used to produce goods and services. They enhance our ability to produce in the future.
- e 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.
5 Multiple choice questions
- The subjective benefit or satisfaction a person expects from a choice or course of action.
- A person who buys and sells goods or services or arranges trades. A middleman reduces transaction costs.
- "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.
- The rights to use, control, and obtain the benefits from a good or service.
- The time, effort, and other resources needed to search out, negotiate and complete an exchange.
5 True/False questions
Macroeconomics → 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.
Resource → 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.
Subjective → a fact based on observable phenomena that is not influenced by differences in personal opinion.
Objective → a fact based on observable phenomena that is not influenced by differences in personal opinion.
Normative economics → The scientific study of "what is" among economic relationships.