question

The need to make choices because economic wants exceed economic means, most likely describes:

answer

the economizing problem

question

An entrepreneur:

answer

a) takes the risk of earning profits or suffering losses from owning an enterprise b) makes strategic business decisions that set the course of an enterprise c) innovates

question

Due to scarce resources, every individual, whether rich or poor, is faced with an _______ cost when choosing to produce or consume more of one good over another.

answer

opportunity

question

Which of the following consists of the physical actions and mental activities that people contribute to the production of goods and services?

answer

Labor

question

A nation's production possibilities curve can shift outward:

answer

a) with an increase in the quality and quantity of resources c) through the use of improved production techniques d) as a result of specialization and trade

question

_________ is the discipline that examines either the economy as a whole or its aggregates.

answer

macroeconomics

question

Marginal analysis involves the comparison or evaluation of:

answer

the additional cost versus the additional benefit of a decision

question

Select all choices from the following that would be considered land to an economist.

answer

1. Forests 2. Arable land 3. Water 4. Oil and mineral deposits 5. Sunlight

question

The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as _______ (one word).

answer

utility

question

The law of increasing opportunity costs states that as production of a particular good ______, the opportunity cost of producing an additional unit _______.

answer

rises; rises

question

All natural, human, and manufactured goods that go into the production of goods and services are considered society's _________ (one word) economic resources.

answer

scarce

question

For better or worse, people have virtually ______ wants.

answer

unlimited

question

Specializing and participating in international trade allows an economy to:

answer

a) circumvent the output limits imposed by its own production possibilities curve b) increase the quantities of capital and consumer goods available to society

question

__________ is the discipline of economics concerned with individual units such as households, firms, and government.

answer

macroeconomics

question

Advances in production technology enable a society to produce

answer

more goods with current or less resources.

question

The four general categories of economic resources are:

answer

a) labor b) capital d) entrepreneurship e) natural resources

question

Like the physical and life sciences, as well as other social sciences, economic relies on the ________ method.

answer

scientific

question

In economics, investment describes spending:

answer

that pays for production and accumulation of capital goods

question

_______ economic resources means limited goods and services.

answer

Scarce

question

Everyone, even the very wealthy has a _______ amount of income.

answer

finite

question

Factories, storage, transportation and distribution facilities, as well as tools and machinery are all examples of physical ________ goods.

answer

capital

question

Which of the following illustrates the attainable combination of two goods that can be produced given a specific set of resources?

answer

Production possibilities curve

question

The concept or term that refers to the notion that all variables except those under immediate consideration are held constant for a particular analysis is known as:

answer

a) the other-things-equal assumption d) ceteris paribus

question

Which of the following includes all natural resources used in the production of goods and services?

answer

Land

question

Capital goods differ from consumer goods in that:

answer

a) capital goods satisfy consumer wants indirectly through the production of consumer goods c) consumer goods satisfy wants directly

question

Combinations of goods that fall on the production possibilities curve:

answer

a) are attainable b) utilize all of an economies resources c) are efficiently produced

question

A consumer's __________ line or constraint shows various combinations of two products that can be purchased with a specific amount of income.

answer

budget

question

Economics assumes that human behavior reflects " _________ self-interest."

answer

rational

question

The situation where one thing has to be given up in order to have some other item is called a:

answer

trade-off

question

A decrease in income will shift the budget line to the ________.

answer

left

question

Arable land, water, machinery and a professional baseball player are all considered scarce economic ________ to production.

answer

inputs

question

Natural resources, labor, human capital, physical capital and entrepreneurship are all scarce economic resources privately or collectively owned by members of society. Where these scarce resources are used to produce goods or services, there is:

answer

a) a cost borne by society in utilizing these resources to produce any good or service c) no "free lunch"

question

Which points or combinations of produced goods on a production possibilities curve are not attainable with the current level of resources?

answer

Those lying beyond the curve.

question

Which of the following combinations are attainable given a consumer's budget line?

answer

a) A combination that involves the entire consumption of one good and zero consumption of the other good b) Combinations on the midpoint of the budget line c) Combinations that fall inside the budget line e) Combinations that fall on the budget line

question

In a world of ________, the decision to obtain the marginal benefit associated with some specific option always includes the marginal cost of forgoing something else.

answer

scarcity

question

A(n) __________ in income shifts a consumer's budget line to the right.

answer

increase

question

A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions is known as an:

answer

c) economic principle d) economic theory

question

Combinations of goods that are beyond the production possibilities curve:

answer

c) are currently unattainable d) would require resources that are not currently available f) require economic growth

question

In comparing marginal benefits versus marginal costs of a decision, we can assume that a decision maker is making choices _______.

answer

purposefully

question

In macroeconomics, an ________ is a collection of specific economic units treated as if they were one unit.

answer

aggregate

question

Economic principles are generalizations expressed as:

answer

the tendencies of typical or average consumers, workers or business firms.

question

____________ economics focuses on facts and cause-and-effect relationships.

answer

positive

question

When consumers purchase a good or service, they do so in order to _____ their utility.

answer

increase

question

The assumption behind purposeful behavior means that:

answer

people act in such a way as to rationally pursue their own interests

question

The ability to produce more of both consumer goods and capital goods is the net result of:

answer

a) increased supplies of the factors of production d) economic growth

question

________ economic analysis concerns what is, whereas _________ economic analysis embodies subjective feelings about what ought to be.

answer

positive, normative

question

As individuals' income rise, they will be confronted with which of the following?

answer

Choices Opportunity Cost Trade-offs

question

As more and more of a particular good is produced, which of the following rises?

answer

Opportunity costs

question

What does each point on the production possibilities curve represent?

answer

a) efficiency in production e) the maximum output of two products

question

The economic assumption that human behavior reflects rational self-interest is predicated on individuals:

answer

weighing the costs and benefits of their decisions

question

The economic term that means incremental changes or additional changes is ____________.

answer

marginal

question

Economic growth is the result of increases in the factors of production, improvements in resource quality and _________.

answer

technological advances

question

As a result of our __________ incomes and __________ wants, it is in our self-interest to economize or pick and choose goods and services that maximize our satisfaction.

answer

limited; insatiable

question

Constant opportunity cost is best exemplified through:

answer

the straight-line budget constraint

question

Combinations of output that fall inside the production possibilities curve represent:

answer

a) less total output in an economy b) goods that are attainable c) inefficient use of resources

question

Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service:

answer

when the marginal benefit is greater than or equal to the marginal cost

question

A consumer's _________ line or constraint shows various combinations of two products that can be purchased with a specific amount of income.

answer

budget

question

Normative, value-based policy questions or statements give rise to:

answer

controversy or disagreement among economists

question

___________ economics considers the desirability of certain aspects of the economy and underlies expressions of support for particular economic policies.

answer

Normative

question

Consumers must forego choices based on a limited budget because:

answer

consumers spend their limited budget purchasing a combination of goods that maximize their utility

question

An increase in _________ will shift the budget line to the right.

answer

income

question

Points _______ the production possibilities curve are attainable so long as an economy uses all of its available resources.

answer

along

question

Economic principles and models are highly useful in:

answer

b) explaining and predicting c) understanding how the economy operates d) analyzing economic behavior f) determining cause and effect

question

Trade-offs arising from limited resources give rise to:

answer

opportunity costs

question

Because individuals weigh costs and benefits, their economic decisions are __________.

answer

rational

question

An increase in income will:

answer

shift the budget line to the right

question

Positive economics _______ value judgement, tries to establish _________ statements about economic behavior, and deals with ________ economic events.

answer

avoids; scientific; actual

question

The rightward shift of the production possibilities frontier represents:

answer

b) increases in the factors of production d) economic growth

question

Which of the following illustrates that at any point in time, a fully employed economy must sacrifice some amount of one good to obtain more of another good?

answer

A production possibilities table

question

A _______ lists the different combinations of two products that can be produced with a specific set of resources, assuming full employment.

answer

production possibilities table

question

Which of the following scenarios are illustrated in this particular PPC?

answer

a) An economy in full employment along the curve. c) Efficiency in production as points A-E. e) Attainable combinations of both goods below the curve.

question

The importance of the production possibilities model is that it shows the different combinations of goods and services that society can produce:

answer

a) given a fixed amount of resources c) in a fully employed economy e) inefficiently f) efficiently

question

A production possibilities table illustrates that at any point in time:

answer

a fully employed economy must sacrifice some amount of one good to obtain more of another good

question

This ________ __________ table lists the different combinations of pizza and robots that can be produced with a specific sets of resources.

answer

production possibilities

question

True or false: Almost all nations have experienced widespread unemployment and unused production capacity from business downturns at one time or another.

answer

True

question

Which of the following are issues most explored in microeconomics?

answer

b) A firm's decision to hire more workers c) Measuring the price of specific goods d) The expenditures of a government entity e) Measuring total revenues of a firm or household

question

In economics, the term _______ describes spending that pays for the production and accumulation of capital goods.

answer

investment

question

Consider the relationship between the price of gas and the quantity of gas consumed by drivers. If we are to consider the price of gas as the only factor affecting the quantity of gas consumed, while holding other factors such as drivers' incomes and tastes and preferences irrelevant, then we are invoking:

answer

b) ceteris paribus f) the other-things-equal assumption

question

Sara has an upcoming exam in economics and chemistry....

answer

the fact that scarcity restricts options and demands choices

question

The following figure illustrates which of the following?

answer

c) That as one moves to the right and produces more pizzas, the number of robots that must be given up rises. d) That the resources used to produce industrial robots and pizzas are not perfectly flexible and interchangeable.

question

Which of the following statements or questions exemplify normative economics?

answer

a) What should the Federal minimum wage be? c) The government should increase the minimum wage. e) The government ought to bail out distressed banks. f) Cable companies should merge because they result in more competitive pricing.

question

Which of the following ar economic measures considered in macroeconomics?

answer

a) National income. b) The level of prices in the economy d) International trade. e) The unemployment rate.

question

Which of the following best exemplifies the relationship between a capital good and a consumer good or service?

answer

A commercial baking oven and loaves of bread

question

Which of the following statements or questions exemplify positive economics?

answer

a) As the price of airfares falls, airlines experience a spike in business. b) The unemployment rate in Mexico is higher than in the United States. c) If the government increases the minimum wage, the unemployment rate will rise.

question

The following figure illustrates the concept of a:

answer

budget line

question

Every individual, whether rich or poor, faces the following economizing problem:

answer

a) insatiable wants b) self-interested behavior c) limited income e) choosing goods and services that maximize utility

question

Society's economizing problem involves the use of which of the following factors of production?

answer

c) labor d) entrepreneurial ability e) capital f) land

question

__________ comes in the form of wages, interest, rent, profit, and even from government programs.

answer

Income

question

Which of the following exemplifies that topics and subdivisions of economics can be rooted in both macroeconomics and microeconomics?

answer

The unemployment rate and the decisions of individual firms and workers to encourage or impede hiring, as well as to search for work, respectively.

question

Which of the following can be stated as potentially true about any economy?

answer

Its current choice of positions on its production possibilities frontier help determine its future location

question

Economists do not include money as an economic resource because:

answer

money produces nothing

question

A budget line describes:

answer

the alternative combinations of two goods that a buyer can purchase with a given money income

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