ECON 1B – Ch: 1-2 – Flashcards
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Economics is the study of
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How individuals and societies allocate their limited resources to satisfy their nearly unlimited wants.
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Suppose that Marie is buying bananas. She decides that she would like to purchase three bananas at the price of $0.25 per banana, but not a fourth banana. Which of the five foundations of economics, illustrated above, best describes Marie's thinking?
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Marginal thinking
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In economics, choices are necessary because of the presence of
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Scarcity
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You were recently hired at a new job. You start next week. This is an example of a______________issue.
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Microeconomics
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Suppose that government officials want to increase the population, so they offer a $1,000 payment to the parents of each child born next year. Which of the five foundations of economics best describes the technique used by these government officials?
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Incentives
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Sam has two options this weekend. He could work at his job and earn $10 per hour for three hours, or he could go to an exhibit at the art museum for that three hours. A ticket for the event cost $30
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$60
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Macroeconomics is the study of
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The overall workings of an economy, such as inflation, growth, and employment.
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Is a claim that can be tested.
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A positive statement
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Given a production possibilities frontier, when is it possible for a company to produce more of one good without sacrificing some production of the other good?
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if the company is producing inside the frontier
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The production possibilities frontier (PPF) shows:
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the trade-off between the efficient production of two different goods.
