question

Human wants exceed the resources available to satisfy them.

answer

Scarcity exists because

question

We make choices in the face of scarcity.

answer

Which of the following statements best describes the study of economics? Economics studies how

question

Human wants exceed the resources available to satisfy them.

answer

What is the reason that all economic issues and problems occur?

question

How people make choices to cope with scarcity.

answer

Economics is the social science that studies

question

Choices made by individuals and businesses.

answer

Microeconomics includes the study of the

question

The effect on economic growth if the government raises taxes.

answer

Which of the following is a topic studied in Macroeconomics?

question

What

answer

When Ford decides to increase production of hybrid cars, it directly answers the _____ question.

question

How

answer

When the power company decides to use manpower to bury it lines, it directly answers the ____ question.

question

For whom will health care be provided

answer

Canada has nationalized healthcare, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has declared that "everyone, regardless of their ability to pay" is the answer to what microeconomics question?

question

Self-interest

answer

Choices that are best for the individuals that make them are the choices in pursuit of

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The social interest

answer

Choices that are best for the society as a whole are choices in pursuit of

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It is the same for all individuals

answer

What is NOT true about rational choice?

question

As the best thing given up

answer

Economists measure opportunity cost

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The opportunity cost of studying is the missed movie

answer

If Jessie studies economics for two hours instead of going to the movies with her friends, then

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The $10 he could have earned at his job

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Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 hr. Ali's opportunity cost of attending the review session is

question

Increased the marginal cost

answer

MADD campaigned to increase the legal penalties of drunk driving. This successful campaign _____ of drunk driving.

question

Comparing the marginal cost and marginal benefits when making a decision

answer

Decision making on the margin involves

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Marginal benefit of graduate school exceeds the marginal cost

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The decision to go to graduate school is a rational one for a college student if the

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A reward or a penalty that encourages or discourages an action

answer

An incentive is

question

An incentive to attend the review session

answer

Your economic professor offers 10 pts extra credit if you attend a review session before your next exam. This extra credit is an example of

question

Positive statement

answer

The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

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ii & iii

answer

Normative statements i. describe how the world is ii describe how the world ought to be iii depend on people's values and cannot be tested

question

A normative statement

answer

A statement that "All children should receive free health care" is an example of what kind of statement?

question

The value of the highest-valued alternative that is forgone in making a choice

answer

Opportunity cost is best defined as

question

Scatter diagram

answer

A graph of the value of one variable against the value of another variable is known as a

question

Shows how a variable changes over time

answer

A time series graph

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Rising or falling quickly

answer

A steep slope in a time series graph means the variable is

question

A general tendency for a variable to rise or fall

answer

Trend refers to

question

Cross-section graph

answer

A graph show the average wage of various demographic groups in 2012. The kind of graph used to show these data would be a

question

Time-series graph

answer

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

question

Cross-section graph

answer

To show the values of an economic variable for different groups in a population at a point in time, it is best to use a

question

A positive relationship between y and x

answer

If the change in y=10 and the change in x=3, there is

question

Negatively related

answer

If x increases and as a result y decreases, then x and y are

question

Either a horizontal or a vertical line

answer

If two variables are unrelated, their graph is

question

Maximum

answer

If a curve rises and then falls, it has a

question

Has a minimum

answer

If a curve fall and then rises, it

question

-5

answer

If the quantity of the variable on the y-axis increases by 10 when the quantity of the variable on the x-axis decreases by 2, then the slope of the curve equals

question

-1

answer

The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line equals

question

3/4

answer

The table above shows data on two variables. If these data were graphed, the slope of the line would be

question

-1.25

answer

The slope of the line shown in the above figure is

question

A positive but not linear

answer

The figure above shows the relationship between the time a student spends studying and the student's GPA that semester. This figure shows ______ relationship between the time spent studying and the GPA.

question

"Other things remaining the same".

answer

The Latin term "ceteris paribus" means

question

Consumption goods and services

answer

Items that are purchased by individuals for their own enjoyment are called

question

A personal computer purchased in order to play games at home

answer

Which of the following is a consumption good or service?

question

Consumption goods and services

answer

The largest share of total production in the United States is

question

Antonio, the manager of the local Taco Hut, purchases a new deep fryer

answer

What would be an example of capital good?

question

Technology

answer

Which of the following is NOT considered one of the factors of production?

question

Land

answer

As a factor of production, oil reserves are counted as

question

Human skills, that is, the quality of labor

answer

The concept of human capital describes

question

Human capital

answer

Jan is attending college and studying to be an investment broker. To improve her chances of employment following college, she has interned a a top brokerage firm during the last two summers. Jan's internship has increased her

question

An MRI machine

answer

Which of the following is NOT directly related to human capital?

question

The tools and instruments used to produce other goods and services

answer

Capital, as a factor of production, refers to

question

Stocks and bonds that are sold by Pepsico

answer

Which of the following is NOT considered capital?

question

Entrepreneurship

answer

The productive resource that organizes labor, land and capital is

question

Rent, wages, interest, and profit or loss

answer

Payments to the factors of production are

question

Wages

answer

The majority of the income earned in the United States is paid in

question

3%

answer

In the United States, the poorest 20% of households earn roughly ______ % of total income

question

The richest 20% of individuals receive approximately 50% of total income.

answer

The personal distribution of income in the United States shows that

question

310 million, 7 billion

answer

Approximately _______ people live in the United States and _______ people live in the world

question

Developing, emerging market

answer

The most people live in _______ economies and the fewest people live in ______ economies

question

Russia

answer

Which of the following is NOT classified as an advanced economy?

question

An advanced economy

answer

Canada is classified by the International Monetary Fund as

question

Developing economies

answer

Most of the world's population lives in

question

An emerging market economy

answer

Poland is classified as

question

More advanced economies typically have more sophisticated technology

answer

Physical capital differences across countries can be seen in the fact that

question

The United States

answer

Of the following, the country with the highest average income per day in the world is

question

Households are, firms determine

answer

______ the owners of the factors of production, while ______what amounts of those factors to hire.

question

Flow of expenditures and incomes in the economy

answer

The circular flow model is used to show the

question

Goods, factor

answer

In the circular flow model, there are two types of markets; the ______ market and the ______ market.

question

Goods market

answer

In the circular flow model, consumption goods are bought and sold in the

question

Businesses to households

answer

The circular flow model shows that goods and services flow from

question

Land, labor, capital, and entrepreneurship are bought and sold

answer

In the circular flow model, the factor markets are the markets in which

question

ii and iii

answer

A real flow in the circular flow diagram is: i. a firm's payments of wages to it's workers ii. a household's purchase of a new car iii. a farmer's use of land to grow corn

question

Households to firms through the factor market

answer

As the circular flow model shows, the factors of production flow from

question

Wages, rent, interest, and profit

answer

In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production?

question

Flow in the opposite direction as do taxes

answer

In the circular flow model with the government sector, transfers

question

Collecting property taxes

answer

Which of the following is NOT a function of the federal government?

question

The national debt

answer

The total amount the federal government has borrowed to make expenditures that exceed tax revenue is called

question

i, ii, and iii

answer

Which of the following are sources of revenue for state and local governments? i. property taxes ii. sales taxes iii. transfers from the federal government

question

The rest of the world; the United States

answer

U.S. exports of goods and services flow to households and firms in ______ and U.S. financial inflows of capital flow to households and firms in ______.

question

Maximum combinations of goods and services that can be produced

answer

The production possibilities frontier illustrates the

question

Attainable and unattainable combinations of goods and services

answer

The production possibilities frontier is the boundary between the

question

The available factors of production and the state of technology

answer

When drawing a production possibilities frontier, which of the following is held constant?

question

All

answer

The table above gives four production possibilities for airplanes and cruise ships. In possibility A, how many resources are devoted to the production of airplanes?

question

Zero

answer

In possibility A, how many resources are devoted to the production of cruise ships?

question

The production possibilities frontier would shift inward

answer

Assume that a association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation's production possibilities frontier?

question

The points inside and the points on the production possibilities frontier

answer

In a production possibilities frontier diagram, the attainable production points are shown as

question

All points on

answer

Production efficiency is represented by ______ a production possibilities frontier

question

Economy is producing at a point inside the production possibilities frontier

answer

If there is unemployment in an economy, then the

question

200 loaves of bread and 800 books

answer

The table above shows a production possibilities frontier for an economy. Which of the following combinations is unattainable?

question

It cannot produce this combination because it lacks enough resources or technology

answer

If the economy tried to produce a combination of 250 loaves of bread and 800 books

question

Country would need to acquire more resources and/or more advanced technology

answer

In order for a country to produce at point E, the

question

Resources are not being used efficiently and/or are unemployed

answer

It the country is producing at point D, then the

question

Of tradeoffs, that in order to produce more of one good, the nation must produce less of another.

answer

The negative slope of the production possibilities frontier represents the idea

question

Decrease in the quantity of the other good by the increase in quantity of the good whose opportunity cost we're calculating

answer

The opportunity cost of producing one more unit of a good is calculated by dividing the

question

2 pounds of apples

answer

On a production possibilities frontier, 500# of apples & 1200# of bananas can be produced while at another point on the same frontier, 300# of apples & 1300# of bananas can be produced. Between these points, what is the opportunity cost of producing a pound of bananas?

question

0.5 pound of bananas

answer

On a production possibilities frontier, 500# of apples & 1200# of bananas can be produced while at another point on the same frontier, 300# of apples & 1300# of bananas can be produced. Between these points, what is the opportunity cost of producing a pound of apples?

question

It will be unable to do so because the production point is unattainable

answer

The table above show a nation's production possibilities frontier. If the nation wants to produce 4 robots & 34 pizzas

question

3

answer

The table above shows a nation's production possibilities frontier. If the nation chooses to increase the production of robots from 2 to 3 and it is on its PPF, it will have to forgo ______ pizzas

question

4 pizzas

answer

The opportunity cost of a robot between combination D and E is

question

1/3 gallon of ice cream for a gallon of milk

answer

The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination A and B is

question

3 gallons of ice cream for a gallon of milk

answer

If the economy is operating at point B, then the opportunity cost of another million gallons of milk is

question

Both B & C are correct

answer

A bowed out production possibilities frontier shows a. that resources are equally productive in all uses b. increasing opportunity cost c. that resources are not equally productive in all uses

question

Constant

answer

If the production possibilities frontier between two goods were a straight line, then the opportunity cost of one good in terms of another would be

question

Economic growth

answer

The sustained expansion of production possibilities is called

question

Its PPF shifts outward

answer

As an economy grows,

question

PPF 2 because it is growing economically

answer

Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, which is India's most like future PPF?

question

Wendy had an absolute advantage in all goods.

answer

If Wendy can produce more of all goods than Tommy in an hour, then

question

Mary in producing both goods

answer

If John can produce 10 chairs or 20 lamps during a week while Mary can produce 12 chairs and 22 lamps in the same time, who has the absolute advantage in producing each good?

question

1 1/2 jackets

answer

In the table above, how many jackets must Mary forgo for every dress she makes?

question

2/3 of a jacket

answer

In the table above, how many jackets must Mark forgo for every dress he makes?

question

1 1/2 jackets; 2/3 jacket

answer

For Mary the opportunity cost of producing a dress is ______ and the opportunity cost for Mark producing a dress is ______.

question

Rika

answer

Rika's opportunity cost of producing 100 t-shirts is 50 jackets. Jeff's opportunity cost of producing 75 shirts is 25 jackets. Who should specialize in jackets?

question

1.5 pounds of potatoes

answer

Huey & Steve can grow potatoes or tomatoes. The table above show the pounds of potatoes and tomatoes Huey & Steve can grow in a week. Based on the table, Huey's opportunity cost of producing 1lb of tomatoes is

question

Potatoes

answer

Huey & Steve can grow potatoes or tomatoes. The table above show the pounds of potatoes and tomatoes Huey & Steve can grow in a week. Based on the table, Steve has a comparative advantage in

question

Huey has an absolute advantage in both potatoes and tomatoes

answer

Huey & Steve can grow potatoes or tomatoes. The table above show the pounds of potatoes and tomatoes Huey & Steve can grow in a week. Based on the table, which of the following statements is correct?

question

40

answer

Deb & Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above show their production possibilities frontiers for assembling packets & stuffing envelopes. If Deb spends all her time assembling packets, how many can she assemble?

question

4 envelopes

answer

Deb & Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above show their production possibilities frontiers for assembling packets & stuffing envelopes. What is Deb's opportunity cost of assembling 1 packet?

question

Deb has a comparative advantage in stuffing envelopes

answer

Deb & Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above show their production possibilities frontiers for assembling packets & stuffing envelopes. Which of the following statements is correct?

question

160

answer

Deb & Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above show their production possibilities frontiers for assembling packets & stuffing envelopes. If Deb & Pete specialize & trade, how many packets can be assembled?

question

Consume but not to produce combinations of goods that lie beyond its production possibilities frontier.

answer

By specializing and trading, a country is able to

Dr. Azaizeh- FSCJ – ECO2023 – CH 1, 2, & 3 HW – Flashcards

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