Chapter 1: Limits, Alternatives, And Choices Questions And Answers – Flashcards
26 test answers
Unlock all answers in this set
Unlock answers 26question
When comparing the additional or incremental costs versus additional or incremental benefits of a decision, one is engaging in:
answer
marginal analysis
Unlock the answer
question
True or false: Economics relies on the scientific method, which is unique to economics alone.
answer
false
Unlock the answer
question
____ is the discipline that examines either the economy as a whole or its aggregates.
answer
Macroeconomics
Unlock the answer
question
_____ is the discipline of economics concerned with individual units such as households, firms and government.
answer
Microeconomics
Unlock the answer
question
An aggregate is a collection of:
answer
specific economic units treated as if they were one unit
Unlock the answer
question
_____ economics focuses on facts and cause-and-effect relationships.
answer
Positive
Unlock the answer
question
True or false: Positive economics encourages value judgments.
answer
False
Unlock the answer
question
The ____ problem refers to the need to make choices because economic wants exceed economic means.
answer
economizing
Unlock the answer
question
Everyone, even the very wealthy, has a _____ amount of income.
answer
limited
Unlock the answer
question
For better or worse, people have virtually ____ wants.
answer
Unlimited
Unlock the answer
question
The situation where one thing has to be given up in order to have some other item is called a:
answer
trade-off
Unlock the answer
question
All natural, human and manufactured goods that go into the production of goods and services are considered society's _____ economic resources.
answer
scarce
Unlock the answer
question
The four general categories of economic resources are:
answer
Labor, entrepreneurship, capital, natural resources
Unlock the answer
question
The following are synonymous with land to an economist:
answer
Arable land, Oil and mineral deposits, water, sunlight, forests
Unlock the answer
question
From a economic standpoint, _____ includes all natural resources used in the production process.
answer
Land
Unlock the answer
question
In addition to entrepreneurship, the resource of human capital and _____ consists of the physical action and mental activities that people contribute to the production of goods and services.
answer
Labor
Unlock the answer
question
For economists, _____ goods includes all manufactured aids used in producing consumer goods and services.
answer
Capital
Unlock the answer
question
In economics, the term ____ describes spending that pays for the production and accumulation of capital goods.
answer
Investment
Unlock the answer
question
The function of an entrepreneur is:
answer
To combine the resources of land, labor and capital to produce a good or service To commercialize new products
Unlock the answer
question
A _____ lists the different combinations of two products that can be produced with a specific set of resources, assuming full employment.
answer
Production possibilities table
Unlock the answer
question
A production possibilities curve illustrates the attainable combination:
answer
of two goods that can be produced given a specific set of resources
Unlock the answer
question
The law of increasing _____ states that as production of a particular good increases the cost of producing an additional unit rises.
answer
Opportunity Costs
Unlock the answer