5 Written questions
5 Matching questions
- Fallacy of composition
- Scientific thinking
- a 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.
- b erroneous view that what is true for the individual will always be true for the group.
- c 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.
- d a fact based on observable phenomena that is not influenced by differences in personal opinion.
- e An opinion based on personal preferences and value judgments.
5 Multiple choice questions
- 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.
- The scientific study of "what is" among economic relationships.
- The subjective benefit or satisfaction a person expects from a choice or course of action.
- The act of selecting among alternatives.
- 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.
5 True/False questions
Scarcity → The subjective benefit or satisfaction a person expects from a choice or course of action.
Private-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.
"Ceteris paribus" → The rights to use, control, and obtain the benefits from a good or service.
Capital → 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 → A person who buys and sells goods or services or arranges trades. A middleman reduces transaction costs.