Econ 201 Ch.1: Scarcity and Choice – Flashcards

A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?

An increase in the labor supply due to immigration would shift the production possibilities curve to the left.

In a relationship between two variables, the "independent variable" refers to the:

If economic resources are perfectly interchangeable between the two products shown on a production possibilities graph:

The linear equation for line (1) on the above graph is:

If two variables are directly related, the relationship will have a graph that:

The study of economics is not useful for consumers because economic analysis focuses only on businesses and the economy.

The following graph is the production possibilities curve of a nation: Refer to the above graph. Which of the following combinations would be unattainable?

The vertical intercept of line (3) on the above graph is:

The process of observing real-world behavior, developing hypotheses, testing them against facts, then using the results to construct theories is called:

Which of the following is not a factor of production?

From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the:

Mia wants to buy a book. The economic perspective suggests that Mia will buy the book if:

Refer to the above graph. Which of the following statements about combination G is true?

Which of the following illustrates a macroeconomic question?

Increasing the share of your income that you save is good for you. Therefore it would be good for the whole economy if everyone saved more. This exemplifies the:

Consider an economy that is producing inside its production possibilities curve. This economy could move closer towards its production possibilities curve by:

Refer to the above graph. The selection of which point on the production possibilities curve is most like to result in the largest increase in economic growth over tim

Which of the following is considered a firm's "factor of production"?

The following graph is the production possibilities curve of a nation: Refer to the above graph. The marginal opportunity cost of the fourth unit of bread is:

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule: Refer to the above table. If the nation uses all of its resources to produce only wheat, then its production combination will be:

The slope of a graph that shows a direct relationship is:

The slope of a graph measures the rate of change in one variable as the other variable changes.

The production possibilities curve is a graph of:

The economic perspective focuses largely on marginal analysis, which means analyzing:

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule: Refer to the above table. Which of the following output-combinations is unattainable:

In a graph of the production possibilities curve, the two axes of the graph indicate the:

Which question is an illustration of a macroeconomic question?

The scientific method does not apply to economics because economics studies human behavior which cannot be generalized.

Which of the following is considered an economic resource?

Marginal analysis is the valuation of insignificant or small benefits from doing things.

The graph above shows the production possibilities curve for an economy producing two goods, X and Y. Which of the points on the graph indicate unemployed resources?

Suppose that a consumer purchases just two goods, X and Y. The Y-intercept of the budget line in this case would indicate the:

Refer to the above production possibilities curves. Curve (a) is the initial curve for the economy, and the nation is initially producing combination P. A shift from curve (a) to curve (b) suggests that the economy can then increase its production of capital goods:

Entrepreneurship refers to a new college graduate who is looking for a job with a large company.

A point or product-combination to the left of and inside a budget line:

The question below are based on the following four sets of data-pairs: (1) A and B, (2) C and D, (3) E and F, and (4) G and H. In each set, the independent variable is in the left column and the dependent variable is in the right column.

You observe that when stock prices rise, interest rates soon fall, and therefore conclude that higher stock prices lead to lower interest rates. This would be an example of:

An economic model is a purposeful simplification of reality, whose function includes:

The post hoc, ergo propter hoc fallacy consists of:

The best output or the optimal production of the nation is:

If a nation produces more consumer goods and less capital goods, then the nation will have:

Refer to the above graph. From the economists' perspective, which is the independent variable and which is the dependent variable?

The slope of a graph relating two variables is -5. This indicates that as one variable decreases, the other variable also decreases.

The statement in a newspaper that "consumer prices rose last month by 1 percent, and if this trend continues, the annual rate of inflation will be 12 percent for the year" is an example of:

The opportunity cost of doing or getting something is best and fully defined as:

Economists have difficulty applying the scientific method because:

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities:

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities: Refer to the above table. According to the production possibilities schedule, a combination of 4 tanks and 650 autos is: