Economics Review Chapters 1-4 – Flashcards
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Which of the following can overcome the problem of scarcity?
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None of the above. 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 classified as a capital resource?
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A caterpillar bulldozer
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The most fundamental concepts underlying the discipline of economics are?
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scarcity and choice
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The branch of economics 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, collect data, 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, ceteris paribus. The phrase "ceteris paribus" means?
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The theory is widely accepted but cannot be accuratly tested.
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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 government should reduce its budget surplus.
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Which fundamental economic question is most closely related to the issues of income distribution and poverty?
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The for Whom to produce
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The opportunity cost of an economic decision is?
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The best alternatie 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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Outweighs the extra cost
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All points on the production possibilities curve are?
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Efficient
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As production of a good increases, opportunity costs tend to rise because?
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Workers are not equally suited to all tasks.
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Which of the following could cause an outward shift of the production possiblities curve?
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A technological advance
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The use of a price system tends to eliminate?
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scarcity
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Which of the following could shift the demand curve for CD's to the Right?
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A fall in the price of portable CD players
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A movement along the demand curve for automobiles is caused 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 do not use any film
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According to the law of supply, There is a direct relationship between the 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 quantity supplied of books but have no impact on the supply of books?
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An increase in the price.
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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
