Economics 2301 Chapter 1 quiz – Flashcards
Unlock all answers in this set
Unlock answersquestion
which of the following most closely relates to the idea of opportunity cost? a. trade-offs b. capitalism c. technological change d. economic growth
answer
Trade-offs
question
Associated with macroeconomics
answer
an empirical investigation of the general price level and unemployment rates since 1990
question
The pleasure, happiness, or satisfaction received from a product is called ____________
answer
utility
question
Which one of the following expressions best states the idea of opportunity cost? a. "He who hesitates is lost" b. "a penny saved is a penny earned" c. "there is no such thing as a free lunch" d. "All that glitters is not gold"
answer
"There is no such thing as a free lunch"
question
Purposeful behavior suggests
answer
individuals may make different choices because of different desired outcomes
question
a land resource
answer
natural gas
question
Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes and muffins. If the price of a latte is $4 and the price of a muffin is $2, then we can conclude that Julia....
answer
can buy 5 lattes or 10 muffins if she chooses to buy only one of the two goods.
question
"ceteris paribus"
answer
other things equal
question
A normative statement is one that
answer
is based on value judgements
question
Positive statement
answer
The temperature is 92 degrees today.
question
Money is not an economic resource because
answer
money, as such, does not produce anything.
question
The assertion that "there is no free lunch" means that
answer
all production involves the use of scarce resources and thus the sacrifice of alternative goods.
question
A person should consume more of something when its marginal benefit
answer
exceeds its marginal cost
question
The economizing problem is one of deciding how to make the best use of
answer
limited resources to satisfy virtually unlimited wants.
question
economic hypothesis
answer
a possible explanation of cause and effect
question
Suppose an economist says that "other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that
answer
all factors other than the price of bananas are assumed to be constant
question
Microeconomics is concerned with
answer
a detailed examination of specific economic units that make up the economic system
question
not considered by economists to be an economic resource
answer
money
question
labor resource
answer
a computer programmer
question
The alternative combinations of two goods that a consumer can purchase with a specific money income is shown by
answer
a budget line
question
A production possibilities curve shows that
answer
the maximum amounts of two goods that can be produced, assuming the full use of available resources
question
the study of economics is concerned with
answer
choices that are made in seeking the best use of resources
question
an increase in money income shifts the budget line to the ______________
answer
right
question
Kara was out jogging and despite being tired decided to run one more mile. Based on her actions, economists would conclude that Kara
answer
decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile
question
When should you decide to go to a movie?
answer
when the marginal benefit of the movie exceeds the marginal cost
question
Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of
answer
purposeful behavior
question
What are the factors of production?
answer
land, labor, capital, entrepreneurial ability
question
A positive statement is one that
answer
focuses on facts, descriptions, and theoretical relationships
question
capital resource
answer
software used by a firm
question
In deciding whether to study for a quiz or go to a concert, one is confronted by the ideas of _____________ and ______________.
answer
scarcity and opportunity coses
question
The production possibilities curve illustrates the basic principle that
answer
an economy will automatically obtain full employment of its resources
question
A well tested economic theory is often called
answer
a principle
question
Macroeconomics approaches the study of economics from the viewpoint of
answer
the entire economy
question
The main function of an entrepreneur is to
answer
innovate
question
Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fast implies
answer
for most people the marginal benefit of reading a second newspaper is less than the marginal cost
question
In constructing models, economists
answer
make simplifying assumptions
question
microeconomic statement
answer
The price of smartphones declined 2.8 percent last year.
