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Which of the following is the best definition of economics?

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The study of how individuals and societies chose to use the scarce resources that nature and previous generations have provided.

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Which of the following is not one of the three fundamental concepts of economics?

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Profit Maximnization

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Opportunity Cost

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That which we forgo, or give up, when we make a choice or a decision.

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Studying how Joshua allocates his time between school and video games is an example of

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Microeconomics

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Macroeconomics is best describes as the study of

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The nation's economy as a whole

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Better insurance benefits increase the inventive of some individuals to work. This statement is best described as

answer

A positive statement

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Health insurance should be provided to every citizen in a wealthy nation such as the United States. This statement is best described as

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A normative statement

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A measure that can change from observation to observation is known as a(n)

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Variable

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Economists use the phrase ceteris paribus to express the assumption

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"All else equal"

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The collection and use of data to test economic theories is

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Empirical economics

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The process by which resources are transformed into useful forms is

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Production

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Suppose you are deciding whether to spend your tax rebate check on a new Ipod or a new digital camera. You are dealing with the concept of

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Opportunity Costs

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If someone has a comparative advantage in growing pineapples

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She can grow pineapples at a lower opportunity cost than other pineapple growers.

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Refer to Figure 2.3. The law of ________ opportunity costs is best depicted by the production possiblities frontier in Panel A.

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Increasing

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Refer to Figure 2.3. Assume that this society's production possibility frontier is represented by Panel C. The opportunity cost of sailboats in terms of surfboards is

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Constant

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According to Figure 2.4, the point where only motorcycles are produced is

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E.

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According to Figure 2.4, which point cannot be produced with the current state of technology?

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F

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According to Figure 2.4, a decrease in unemployment may be represented by the movement from

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C to D

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Refer to Figure 2.6. Economic growth is represented by a

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Shift from ppf1 to ppf2

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Refer to Table 2.2. For Molly, the opportunity cost of designing one tattoo is

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2 avatar designs

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Refer to Table 2.2. Which of the following statements is true?

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Pete has a comparative advantage in avatar design and Molly has a comparative advantage in tattoo design.

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An increase in the stock of capital will cause the

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Production possibility frontier to shift outward

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In a free-market system, the amount of output that any one household get depends on its

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Income & Wealth

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Firms are organizations that

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Transform resources into products

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Which of the following will cause a shift in the demand curve for hoverboards

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All of the above

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Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?

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A decrease in income, assuming that Dr. Pepper is a normal good

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Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?

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A decrease in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper

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Demand for one item goes down when the price of another item goes up. These items must be

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Complements

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An increase in the price of a good or service leads to a(n) _____ that leads to a ______.

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Decrease in quantity demanded; movement along the demand curve

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A change in income leads to a ______ that cause a _____.

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Change in demand; shift of the demand curve

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Refer to Figure 3.7. If pizza and hamburgers are substitutes, an increase in the price of hamburgers will cause a movement from Point B on demand curve D2 to

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Demand curve D3

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Refer to Figure 3.7. A movement from Point C to Point B on demand curve D2 would be caused by a(n)

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Increase in the price of pizza

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Refer to Figure 3.9. Assume that there are only two people in the market for coconuts: Sasha and Kyle. Along the market demand curve for coconuts, at a price of _______ quantity demanded would be

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$14,7

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According to the law of supply, there is a

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Positive relationship between price and the quantity of a good supplied

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Refer to Figure 3.12. The supply curve for hula hopps shifts from S0 to S1. This could be caused by

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A decrease in the number of firms selling hula hoops

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Equilibrium is the condition that exists

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When quantity demanded equals quantity supplied

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Refer to Table 3.1. This market will be in equilibrium if the price per pizza is

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$9

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Refer to Table 3.1 If the price per pizza is $12, the price will

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Decrease because there is an excess supply in the market

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Refer to Figure 3.16. When the economy moves from Point C to Point B, there has been

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An increase in demand and an increase in supply

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Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been

answer

A decrease in demand and a decrease in quantity supplied

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