LESSON 1 PRACTICE QUESTIONS – Flashcards
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__________ is the study of the choices we make in the allocation of scarce resources.
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Economics
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Over a reasonable period of time a nation must choose to___________________ within the global markets in order to prosper.
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Balance it's trade
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The freedom to make purchases as desired and to work and live independent of extensive controls by the government is a basic ____________ in a free market society.
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Cultural Value
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A balance of responsibilities taken on by all people in each sector of the economy results in ________________ (equity) for all people
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Fairness of Opportunity
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Stability is the goal of economics seeking to ______________ so that an economy does not experience high inflation.
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Allocate Resources
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There are many variables which determine(s) how much individuals are able to make during their careers and (using "ceteris paribus" based studies) the major variable turns out to be their _____________________ .
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Education
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Policy Economics is the application of the Principles of Economics to decision making (choices) by the various arms of the _____________ .
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Government Sector
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Full Employment is the goal seeking the full use of all available workers ______________ .
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who are willing and able to work
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The statement, "According to a government report, the inflation rate is 1%", is a __________ statement.
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Positive Economic
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In order to evaluate the ________ that must be made toward providing value for people, it is assumed that all parties to the process are rational.
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Choices
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In the Resource (or Factor) Markets of the Circular Flow model, Households provide __________ to the Business sector in exchange for Rent.
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Land(Natural Resources)
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Critical reasoning in economics considers __________ course(s) of action and the expected results (benefits) relative to the costs of each action.
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All of the alternative
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In choosing whether or not to go to a particular concert ... if the marginal cost is less than the marginal benefit (marginal utility) gained, then it would be "rational" _________ to the concert.
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"to go"
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________________ analyzes how we choose to use our resources on a smaller scale and includes measures of performance such as consumer utility patterns, business profits, and business costs.
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Microeconomics
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"Allocation" is concerned with how we choose to use our scarce resources on ___________________.
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A limited variety of different projects
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In the Resource (or Factor) Markets of the Circular Flow model, Households provide __________ to the Business sector in exchange for Wages.
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Labor
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Stability is the goal of economics seeking to allocate resources so that an economy does not experience __________________ .
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High Inflation
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The freedom to make purchases as desired and to work and live independent of extensive controls by __________ is a basic cultural value in a free market society.
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the government
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Over a reasonable period of time a nation must choose to balance its trade ____________ in order to prosper.
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within its global markets
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_________ Economics is the application of the Principles of Economics to decision making. (choices) by the various arms of the government.
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Policy
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In choosing whether or not to go to a particular concert ... if the marginal cost is greater than the marginal benefit (marginal utility) gained, then it would be "rational" _________ to the concert.
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"to not go"
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Being "rational" means being able to clearly understand a) what one needs and b) the __________ in gaining the fulfillment of each need.
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reality of the cost
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Microeconomics analyzes how we choose to use our resources on a smaller scale and includes measures of performance such as
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business cost and consumer utility allowance
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The statement, "According to a government report, the unemployment rate is at 3%", is a __________ statement.
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Positive economic
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The actual goal of "Full Employment" is to have a(n) ________ level of employment which will be discussed in a later lesson
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optimum (balanced)
