ECO 201 Chapter 1 – Flashcards
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the additional costs are greater than the additional benefits.
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Saying "the marginal costs are greater than the marginal benefits" is the same as saying
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The central bank should increase the nation's money supply.
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Which of the following is a normative macroeconomics statement?
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Capital
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Produced goods used as inputs for the production of other goods comprise the resource known as
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built on the major factors or variables that the theorist believes explain some event, a simplified abstract representation of the real world, used to understand the real world.
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A theory is
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what is.
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In all cases, positive economics deals with
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the study of how prices are determined in the computer industry
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Which of the following is a microeconomics topic?
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satisfaction.
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To an economist, utility means:
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money.
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Which of the following is not one of the four broad categories of resources?
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If you drop a ball from the top of a building, it will fall to the ground.
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Which of the following is an example of a positive economic statement?
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the price of the ticket plus the value to Amy of what she would have chosen to do with her time had she not chosen to go to the movies.
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Amy's opportunity cost of going to the movies is
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The person compares additional benefits and additional costs when deciding what to do.
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What does it mean if a person makes a "decision at the margin"?
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Land
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Minerals, animals, water and forests are all considered to be part of the resource category known as
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inversely related.
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If variable X goes up as result of variable Y going down, then X and Y are
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Government
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Which of the following is not one of the four broad categories of resources?
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wants are greater than the limited resources available to satisfy these wants.
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Scarcity means
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the best (or most highly valued) forfeited alternative.
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Opportunity cost is the value of
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all other things held constant or nothing else changes.
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Ceteris paribus means
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The marginal cost of purchasing the second newspaper exceeds the marginal benefit of purchasing that paper.
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Many people buy one newspaper per day, but rarely do they buy two of the same newspapers on the same day. What is the economic justification for this behavior?
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Labor
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The physical and mental talents people bring to production processes comprise the resource called
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the highest valued alternative one forfeits to attend college.
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The opportunity cost of attending college is
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infinite.
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Economists believe that people's wants are
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scarcity.
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According to economists, competition exists because of
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science of scarcity.
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The author of the textbook defines economics as the
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good
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Something that provides utility is called a
