ch 2 econ – Flashcard
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Which of the following is not a scarce good?
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Garbage
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Rational choice
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both A and C.
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Scarcity is defined as
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the imbalance between what is wanted and what is freely available.
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The study of economics is primarily concerned with
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choices which have to be made concerning the use of scarce resources.
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The opportunity cost of attending college does not include
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money spent on meals while at school.
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A rational person makes a choice if
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the benefits outweigh the costs.
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Which of the following is a correct statement?
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Economics laws are important because they allow us to predict and possibly control economic events.
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If you wait in line one hour to buy a concert ticket for $30, the opportunity cost of that ticket is
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the best alternative to both the $30 and the one hour.
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A good is not scarce
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if everybody can have all they want of it.
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The opportunity cost of any particular choice is
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the best alternative to the choice.
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If everyone made rational choices, then
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everyone could make different choices.
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Scarcity
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requires people to make choices.
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The opportunity cost of a college education is
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the highest salary that you could make if you worked full time instead of going to school.
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Economics is mainly concerned with the study of
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scarcity.
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Economists use economic models
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to understand how the real world works.
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Positive statements are evaluated on the basis of evidence while normative statements are evaluated on the basis of an individual's judgment.
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true
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In economics the term "ceteris paribus" means
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hold all other variables constant
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The main reason that testing theories is more difficult in economics than in the physical sciences is
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the difficulty in performing an experiment on an economic system.
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Economic value is created when
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the benefits of a trade exceed the costs of the trade.
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Which of the following is an example of how economists may differ in their scientific judgments?
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A disagreement on the effects of a change in tax laws on consumer behavior.
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Normative statements
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make statements about how the world ought to be.
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Economics addresses such issues as
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All the above are correct.
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Economics is the study of
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how society allocates scarce resources.
