question

Economics is the study of the ________ people make to attain their goals, given their ________ resources.

answer

choices; scarce

question

Economists assume that rational people

answer

respond to economic incentives.

question

Eva Bakery Question

answer

4 hours

question

Every society faces economic trade-offs. This means

answer

producing more of one good means less of another good can be produced.

question

In a market economy, who decides what goods and services will be produced?

answer

consumers and producers

question

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it, ________ occurs.

answer

allocative efficiency

question

Which of the following is part of an economic model?

answer

assumptions

question

Which of the following is a normative economic statement?

answer

Tobacco products should be banned in all public spaces.

question

The processes used to produce goods and services describes

answer

technology.

question

triangle A.

answer

$3.15 million

question

The branch of economics which studies how households and firms make choices, interact in markets, and how government attempts to influence their choices is called

answer

microeconomics.

question

Suppose the U.S. government encouraged new teachers to take jobs in underperforming schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying the economic idea that

answer

people respond to economic incentives.

question

Marginal cost is the ________ associated with a particular increase in an activity.

answer

additional cost

question

What does the term "marginal" mean in economics?

answer

an additional or extra

question

The Stogie Shop, a cigar store in the mall, sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each. What is the opportunity cost of buying a hand-rolled cigar?

answer

4 machine-made cigars

question

In a market economy, those who are willing and able to buy what is produced

answer

receive the most of what is produced.

question

The ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier.

answer

attainable

question

If the production possibilities frontier is linear, then

answer

opportunity costs are constant as more of one good is produced.

question

Increasing marginal opportunity cost implies that

answer

the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity INCREASES by progressively smaller amounts.

question

An outward shift of a nation's production possibilities frontier can occur due to

answer

an increase in the labor force.

question

For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces. Which of the following is true about the comparative advantage between the two countries?

answer

Switzerland has the comparative advantage in watches.

question

Guatemala and Costa Rica

answer

Guatemala

question

Estonia and Finland

answer

Finland

question

If a vineyard wants to raise funds to purchase a new bottling machine, it does so in the

answer

factor market.

question

Circle Graph w/ Letters

answer

households

question

Adam Smith's ________ refers to the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole.

answer

invisible hand

question

A critical function of the government in facilitating the operation of a market economy is

answer

setting up and enforcing private property rights.

question

Which of the following countries does not come close to the free market benchmark?

answer

Cuba

question

The circular flow model demonstrates

answer

the roles played by households and firms in the market system.

question

Specializing in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?

answer

consume a combination of goods that lies outside its own production possibilities frontier

question

If a country produces only two goods, it is possible to have an absolute advantage in the production of both goods

answer

True

question

A welding machine is an example of a factor of production if it is being used to produce automobiles.

answer

True

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