Economics: the science of scarcity – Flashcards
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MAP Use the chart to determine how consumers spent most of their money in 1959
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On nondurable goods
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MAP In 1999 according to the chart consumer spend most of their money in such places as
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Day care centers, car repair shops, and hospitals
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MAP I'm the period 1979-2001 according to the chart, American gross savings as a percent of disposable income
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Decreased by 6.9 percentage points
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MAP On the graph, if the maximum amount of money put a side for a college education per year is shown by the vertical distance from zero to point a on the Y axis, what is the distance between zero and point eat on the X axis show
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The maximum number of photo cell phones that can be purchased in the minimum amount of money that could be saved for college
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Prehistoric people began developing agriculture in addition to hunting and gathering as a means of supplying their wants and needs as early as the
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New Stone Age
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The 18 century saw the replacement of an economy based on manual labor to one dominated by technological and manufacturing advancements. Historically this period Is referred to as the
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Industrial revolution
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In 1798, he published his "essay on the principle of population", in which he expressed his concern about the ability to provide food for a rapidly growing population. The author of that essay was
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Thomas R Malthus
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During the 18 century, which philosopher and economist suggested that government should follow a policy of laissez faire (noninterference with business affairs)
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Adam smith
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Select the answer that puts the following 19th-century economic philosophers and their works in correct chronological order 1• David Ricardo - principles of political economy and taxation 2• John Stuart Mill -principles of political economy 3• Karl Marx- capital 4• Henri de saint-Simon - Simon the industrial system
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1,4,2,3
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Which of the following does economics examine?
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Scarcity
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What must all sciences begin with ?
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Consistent definitions
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Who must know the scientific definitions of economics ?
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Everyone studying economics
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Which of the following is perhaps the most frequent cause of difficulty or failure when studying economics?
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Failure to understand basic definitions
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Which of the following terms means people want more things than they can easily acquire?
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Scarcity
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Which of the following terms is the primary factor that determines how much economic value something has
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Scarcity
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Resources spent for placing a computer, projector, and screen and every school classroom are a form of
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Capital resources
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What does the term human capital refer to?
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The different skills and knowledge of workers
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Education, training, and work experience increase
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Human capital
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Most of the worlds richest people are
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Entrepreneurs
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What do economists call the physical things that firms make (things that can be seen or touched)
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Goods
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What do economists call the things that firms sell which cannot be touched or seen
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Services
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A basic assumption of economics is
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Rational self-interest
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Which of the following statements is true of the economic choices that consumers make
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Different people make different economic choices
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In economics, the concept of margin means
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The smallest amount of something that is Bought or sold
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Which of the following is the meaning of "market" in economics
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The mechanism, process, or means by which buyers and sellers are brought together
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What is the economic term for what you lose when using resources for something else
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Opportunity cost
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For how many things can one use the same resource at one time
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One
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How does "cost" differ from "opportunity cost"?
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Cost represents the money paid for something and opportunity cost is the value of one thing given up when one chooses something else
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The money price one must pay for one more of something is its
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Marginal cost
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What is the economic term that describes the increased benefit or satisfaction we will enjoy as a result of consuming one more of something
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Marginal benefit
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Which of the following is the BEST synonym for the economic term "utility"
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Benefit
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Which of the following groups of people are affected by the laws of economics
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Everybody
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Why is economics considered a science
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Because it follows strict systematic and practical methods
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Economics is a social science will physics, chemistry, and biology or physical sciences. How did the social sciences differ from the physical sciences
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Social sciences study human society and behavior, while physical sciences studies physical and nonhuman things
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Why is there so much emphasis on exact definitions in economics
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Because economics is a science and it must be precise
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Why do students who do not fully understand economic terms and their definitions have trouble succeeding
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Without definitions you cannot understand the ideas
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Something that people want one almost always be somewhat scarce (no matter how much of it physically exists) because
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Human wants are unlimited
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Mike Tyson earned about $200 million over his 15 year boxing career, but by 2003 he was in financial trouble. This is an example of
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Unlimited human wants
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Why are some music CDs issued in limited editions
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By limiting the number made (the quantity supplied) the scarcity is increased and people will pay more
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The Super Bowl is often played in stadiums that see over 80,000 people. How can tickets for the Super Bowl sell for thousands of dollars when there are so many tickets
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The quantity demanded far exceeds the quantity supplied, creating scarcity at the normal price
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The resource of production called natural resources includes which of the following
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All of the above
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Which resource of production is the only one that nations can significantly increase in the short term
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Capital resources
