Eco #1 Test – Flashcards
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Which of the following al can overcome the problem of scarcity?
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None of the above : scarcity is prevalent in all societies
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which of the following is the best example of a renewable resource
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forests
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which of the following would be clasified as a capitol resource
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a catapilar bulldozer
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the most fundamental concepts underlying the discipline of economies are
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scarcity and choice
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the branch of economies that focuses on economywide variables like inflation and unemployment is called
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macroeconomics
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which of the following lists the steps to building a model in the correct order
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identify the problem, develop a model, collect data and test the model
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an economic model is useful only if it
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yields accurate predictions
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an economic theory claims that a rise in gasoline prices will cause gasoline purchases to fall, certain paribus. the phrase "ceteris paribus" means that
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other relevant factors like consumer incomes must be held constant
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next year will see a rising economy if there is snow on the ground in boston on christmas day. this statement is an example of
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the association versus causation error in reasoning
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which of the following is the best example of a normative economic statement
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the federal gov should reduce its budget surplus
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the three basic categories of resources are land labor and
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capitol
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which of the following is the best example of a nonrenewable roesource
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fossil fuels
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which of the following is the best example of an activity that would be undertaken by an entrepreneur
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starting a new business
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economics by definition studies how people
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make choices in the face of scarcity
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which of the following is the best example of a microeconomic topic
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the reason of increase in the price of soft drinks
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when building a model economist must
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provide a complete description of reality
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in order to test a theory, an economist must determine if
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data are consistent with the theorys predictions
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a student observes that sales of cardboard boxes rise immediatley prior to economic expansions. if the student concludes that greater box sales cause economic expansion then the student has,
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confused association and causation
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what type of economic analysis is limited to testable verifiable statements?
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positive economics
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we should rais the minimum wage in order to help low-income families . this statement is an example of
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a normative statement
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suppose the economy is producing 200,000 bushels of food and 50,000 skeins cloth. what is the opportunity cost of producing an additional 100,000 bushels of food.
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20,000 skeins of cloth
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which of the following production levels is unattainable with the economys existing resources and technologies
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300,000 bushels or food and 40,000 skeins of lcoth
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suppose the economy is producing 200,000 bushels of food and 30,000 skeins of cloth according to the graph
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the economy is not usiing its resources to its capacity
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which fundamental economic question is mos closely related to the issues of income distribution and poverty
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the for whom to produce question
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the oppurtunity cost of an economic descicion is
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the best alternative that was sacrificed
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according to marginal analysis you should spend more time studying economics if the extra benefit from an additional hour of study
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outwweihs the extra costg
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all points on the production possibilites curve are
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efficient
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as production of a good increases, oppurtunity cost tend to rise because
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there will be more inefficiency
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which of the following could cause an outward shift of the production possibilites curve
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a technological advance
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investment refers to the process of accumulating
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capitol goods
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a movement along the demand curve for automibiles is cause by a change in
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the price of automobiles
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which of the following would cause a decrease in the demand for 35mm film
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the introduction of new digital cameras that dont use film
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according to the law of supply, there is a direct relationship between quantity supplied of a good and the
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price of the good
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which of the following would increase the wuantity supplied of books but have no impact on the supply of books
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an increase in the price of books
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which of the following would increase the supply of movie video rentals
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new video rental stores are opened in the community
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if the price of tea is below its equilibrium level, then
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there is a shortage of tea
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the use of a price system tends to eliminate
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shortages and supluses
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a fall in the price of a good causes an increase in its
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quantity demanded
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according to the law of demand, when will higher corn prices reduce the quantity demanded of corn
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when nonproce determinates like income and the number of buyers, are held constant
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which of the following will cause a decrease in the demand for gasoline
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a decrease in prices for public transportation
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bus travel and pawn shop services are common examples of
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inferior goods
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if the cost of lumber increases , what will likely happen in the market for new houses?
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the supply of houses will decrease
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in accordance with the law of supply both individual and market supply curves are drawn
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upward sloping
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which of the following would decrease the supply of airline travel
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higher fuel costs
