question

____ economic analysis concerns what is, whereas ____ economic analysis embodies subjective feelings about what ought to be.

answer

Positive Normative

question

____ economics focuses on facts and cause-and-effect relationships.

answer

Positive

question

____ is the discipline of economics concerned with individual units such as households, firms, and government.

answer

Microeconomics

question

____ is the discipline that examines either the economy as whole or its aggregates.

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Macroeconomics

question

A consumer's ____ line or constraint shows various combinations of two products that can be purchased with a specific amount of income.

answer

Budget

question

A decrease in income will shift the budget line to the ____.

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Left

question

A nation's production possibilities curve can shift ____ with an increase in the quality and quantity of resources:

answer

Outward

question

A nation's production possibilities curve can shift ____ through the use of improved production techniques:

answer

Outward

question

A nation's production possibilities curve can shift ____ as a result of specialization and trade:

answer

Outward

question

A ____ ____ curve "implies" the attainable combination of many goods that can be produced given a specific set of resources:

answer

Production possibilities

question

A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions is known as an:

answer

Economic principle

question

Advances in production technology enable a society to produce ____ goods with current or less ____:

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More Resources

question

All natural, human, and manufactured goods that go into the production of goods and services are considered society's ____ economic resources.

answer

Scarce

question

An ____ in income shifts a consumer's budget line to the right.

answer

Increase

question

An economy can produce either guns or butter with all available resources. Suppose it currently produces all butter and it chooses to produce some guns, thereby giving up some production of butter. As a result, the first 200 units of guns are produced at the cost of only 50 units of butter. Not surprisingly, the next 200 units of guns are produced at the cost of 150 units of butter and the last 200 units of guns at the cost of 300 units of butter. What does this describe?

answer

The law of increasing opportunity costs

question

Who takes the risk of earning profits or suffering losses from owning an enterprise? Who makes strategic business decisions that set the course of an enterprise? Who innovates?

answer

An entrepreneur

question

An increase in ____ will shift the budget line to the right.

answer

Income

question

Arable land, water, machinery, and a professional baseball player are all considered scare economic ____ to production.

answer

Resources

question

As individuals' incomes ____, they will still be confronted with choice, ____ ____, and trade-offs.

answer

Rises Opportunity cost

question

Because consumers behave in a rationally self-interested manner, the consumer will ____ a good or service when the ____ ____ is greater than or equal to the ____ ____:

answer

Purchase Marginal benefit Marginal cost

question

Capital goods differ from consumer goods in that capital goods satisfy consumer wants ____ through the production of consumer goods

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Indirectly

question

Capital goods differ from consumer goods in that consumer goods satisfy wants ____

answer

Directly

question

Combinations of goods that are beyond the production possibilities curve would require ____ that are not currently available.

answer

Resources

question

Combinations of goods that are beyond the production possibilities curve are currently ____.

answer

Unattainable

question

Combinations of goods that are beyond the production possibilities curve require ____ ____.

answer

Economic growth

question

Combinations of goods that fall on the production possibilities curve are ____

answer

Attainable

question

Combinations of goods that fall on the production possibilities curve utilize ____ of an economy's resources:

answer

All

question

Combinations of goods that fall on the production possibilities curve are ____ produced.

answer

Efficiently

question

Combinations of output that fall inside the production possibilities curve represent ____ total output in an economy.

answer

Less

question

Combinations of output that fall inside the production possibilities curve have goods that are ____.

answer

Attainable

question

Combinations of output that fall inside the production possibilities curve have ____ use of resources.

answer

Inefficient

question

Consider the relationship between the price of gas and the quantity of gas consumed by drivers. If we are to consider the price of gas as the only factor affecting the quantity of gas consumed, while holding other factors such as drivers' incomes and tastes and preferences irrelevant, then we are invoking ____ ____

answer

Ceteris paribus

question

Consumers derive personal satisfaction from goods and services by allocating their time, energy, money, and other resources so as to ____ their satisfaction from consuming these goods:

answer

Maximize

question

Consumers derive personal satisfaction from acting in a ____ ____ manner.

answer

Self-interested

question

Consumers must forego choice based on a limited budget because consumers spend their ____ budget purchasing a combination of goods that ____ their utility.

answer

Limited Maximize

question

Due to scarce resources, every individual, whether rich or poor, is faced with an ____ cost when choosing to produce or consume more of one good over another.

answer

Opportunity

question

Each point on the production possibilities curve represent some ____ ____ of two products.

answer

Output combination

question

Economic growth is the result of ____ in resource quality.

answer

Improvements

question

Economic growth is the result of ____ in the supply of resources.

answer

Increases

question

Economic growth is the result of ____ advances.

answer

Technological

question

Economic principles are generalizations expressed as the tendencies of typical or average ____, workers, or business ____:

answer

Consumers Firms

question

Economics assumes that human behavior reflects "____ self-interest."

answer

Rational

question

Economists do not include money as an economic resource because money produces ____:

answer

Nothing

question

Everyone, even the very wealthy, has a ____ amount of income.

answer

Limited

question

Factories, storage, transportation and distribution facilities, as well as tools and machinery are all examples of physical ____ goods.

answer

Capital

question

For better or worse, people have virtually ____ wants.

answer

Unlimited

question

In a world of ____, the decision to obtain the marginal benefit associated with some specific option always includes the marginal cost of forgoing something else.

answer

Scarcity

question

In addition to entrepreneurship, the resource of ____ consists of the physical actions and mental activities that people contribute to the production of goods and services.

answer

Labor

question

In comparing marginal benefits versus marginal costs of a decision, we can assume that a decision maker is making choices ____.

answer

Purposefully

question

In economics, investment describes spending that pays for the ____ and ____ of capital goods:

answer

Production Accumulation

question

In macroeconomics, an ____ is a collection of specific economic units treated as if they were one unit.

answer

Aggregate

question

Individuals' economic decisions are purposeful or rational because they weigh ____ and ____.

answer

Benefits Costs

question

Jill is unemployed and decides to spend the day at the spa. Jill's opportunity cost of spending a day at the spa is equal to the ____ spa rate, any other ____ expenses, and the value of the best ____ activity in which Jill could be engaged.

answer

Daily Monetary Alternative

question

Land and mineral resources, transportation and communication facilities, factories and farm buildings, equipment, tools, and machinery are all examples of:

answer

Scarce economic resources

question

Like the physical and life sciences, as well as other social sciences, economics relies on the ____ method.

answer

Scientific

question

Marginal analysis involves the comparison or evaluation of the additional ____ versus the additional ____ of a decision.

answer

Cost Benefit

question

Natural resources, labor, human capital, physical capital, and entrepreneurship are all scarce economic resources privately or collectively owned by members of society. Where these scarce resources are used to produce goods or services, there is no ____ ____.

answer

Free lunch

question

Normative, value-based policy questions or statements give rise to ____ among economists.

answer

Controversy

question

People desire goods and services that provide maximum utility. In fact, our desires or wants are:

answer

Unlimited

question

Points lying ____ the production possibilities curve are attainable, reflecting less total output than can be produced.

answer

Inside

question

Society's economizing problem involves ____ cost, making choices in the face of ____, and ____ resources.

answer

Opportunity Scarcity Scarce

question

Specializing and participating in international trade allows an economy to circumvent the ____ limits imposed by its own production possibilities curve.

answer

Output

question

Specializing and participating in international trade allows an economy to ____ the quantities of capital and consumer goods available to society.

answer

Increase

question

Suppose an economy produces only two goods, consumer goods and capital goods. Its current combination of production involves a higher level of capital goods than consumer goods. Which of the following can be inferred from this current choice on its production possibilities curve? That its ____ choice in production may result in ____ future prospects for economic growth.

answer

Present Higher

question

Suppose you are given a $100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximize your satisfaction. In other words, your choices will account for the effects of marginal ____ and marginal ____ of each goods considered.

answer

Benefits Costs

question

The ability to produce more of both consumer goods is the net result of economic ____ and ____ supplied of the factors of production.

answer

Growth Increased

question

The concept or term that refers to the notion that all variables except those under immediate consideration are held constant for a particular analysis is known as:

answer

Ceteris paribus

question

The concept that "there is no free lunch" reflects the notion that ____ resources are used to produce so-called "free goods" that have alternative uses that are given up in order to produce said "free" goods.

answer

Scarce

question

The economic term that means incremental changes or additional changes is ____.

answer

Marginal

question

The economizing problem refers to the need to make choices because economic wants are ____ than economic means.

answer

Greater

question

The four general categories of economic resources are ____, ____ resources, entrepreneurship, and_____

answer

Capital Natural Labor

question

The importance of the production possibilities model is that it shows the different combinations of goods and services that society can produce efficiently, ____, in a fully employed economy, and given a fixed amount of ____.

answer

Inefficiently Resources

question

The law of increasing opportunity costs states that as production of a particular good ____, the opportunity cost of producing an additional unit ____.

answer

Rises Rises

question

The need to make choices because economic wants exceed economic mean, most likely describes:

answer

The economizing problem

question

The net result of increased quantities of the factors of production is ____ ____

answer

Economic growth

question

The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as ____.

answer

Utility

question

The situation where one thing has to be given up in order to have some other item is called a ____ ____

answer

Trade-off

question

The straight-line budget constraint indicates ____ opportunity cost.

answer

Constant

question

Trade-offs arising from limited resources give rise to:

answer

Opportunity costs

question

What does each point on the production possibilities curve represent? Efficiency in ____ and the maximum ____ of two products.

answer

Production Output

question

When individuals make decisions with some desired outcome in mind, they are engaging in:

answer

Purposeful behavior

question

Which of the following are economic measures considered in macroeconomics? The ____ rate, national ____, the level of ____ in the economy, and ____ trade.

answer

Unemployment Income Prices International

question

Which of the following combinations are attainable given a consumer's budget line? Combinations on the ____ of the budget line, ____ on the budget line, fall ____ the budget line, and a combination that involves the entire consumption of one good and ____ consumption of the other goods.

answer

Midpoint Fall Inside Zero

question

Which of the following combinations are unattainable given a consumer's budget line? Combinations that fall ____ the budget line.

answer

Beyond

question

Which of the following illustrates that at any point in time, a fully employed economy must sacrifice some amount of one good to obtain more of another good?

answer

A production possibilities table

question

Which of the following includes all natural resources used in the production of goods and services?

answer

Land

question

Which of the following results from having scarce economic resources? The production of ____ goods and services.

answer

Limited

question

Why is it in our self-interest to economize or pick and choose goods and services that maximize our satisfaction? Because of our ____ incomes conflicting with our insatiable wants for goods and services.

answer

Limited

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