question

Is the inability to satisfy all our wants

answer

Scarcity

question

Scarcity

answer

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

question

coping with scarcity and choices made as a result of scarcity in a society

answer

The study of economics is best described as a study of

question

how people make choices to cope with scarcity

answer

Economics is the social science that studies

question

What?

answer

When you make the decision to spend your time attending class, which economic question are you answering ?

question

Should we make faster microprocessors or pest resistant corn?

answer

Of the three major economic questions , which of the following is the best example of a "What?" question?

question

How

answer

When a home builder decides to computerize all of its production schedule , it directly answers the ____________ question.

question

For whom?

answer

Which economic question depends on the income that people earn and the prices they pay for goods and services?

question

Self interest

answer

Choices that are best for the individuals that make them are choices in pursuit of

question

reflects choices that are best for individual who makes them

answer

Self Interest

question

The social interest

answer

Choices that are best for the society as a whole are choices in pursuit of

question

Efficiency and equity are important goals for an economy

answer

Which is NOT a core economic idea?

question

Is a choice that uses the available resources to best achieve the objective of the person making the choice

answer

Rational choice

question

What you must give up to get something; what you are willing to give up to get it.

answer

In economic cost is _________ and benefit is________.

question

the benefits of the highest valued alternative forgone

answer

An opportunity cost is

question

The opportunity cost of studying is the missed movie

answer

If Jessie studies economics for two hours instead of going to the movies with her friends, then

question

the $10 he could have earned at his job.

answer

Ali decides to attend the one hour review session for micro instead of working at his job. his job pays him $10 per hour. Ali's opportunity cost of attending the review session is

question

a sunk cost

answer

Suppose you have tickets to a hockey game the tickets cannot be refunded or resold. In deciding whether or not to attend the game, the cost of the ticket is,

question

is called the marginal cost

answer

The opportunity cost of a one-unit increase in an activity

question

decreases as you do it more

answer

The benefit of one unit increase in an activity

question

a choice on margin

answer

A choice made by comparing all relevant alternatives systematically and incrementally is

question

comparing the marginal cost and marginal benefits when making decision

answer

Decision making on the margin involves

question

takes account of all benefits and all opportunity costs including both marginal and sunk costs

answer

To make a rational choice, a person

question

marginal benefit of graduate school exceeds the marginal cost

answer

The decision to go to graduate school is a rational one for a college student if the

question

a reward or penalty that encourages or discourages an action

answer

an incentive is

question

workers make decisions based on marginal benefit of each hour worked compared to marginal cost of work.

answer

Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

question

microeconomics

answer

The study of choices of one individual or business is called

question

to examine the behavior and operation of the individual units or sectors that make up the economy

answer

The primary focus of microeconomics

question

i,ii,iii

answer

Which of the following is a microeconomics topic?

question

national or global economies

answer

Macroeconomics is the study of

question

The number of jobs and production in Zimbabwe increase.

answer

which of the following is a macroeconomics issue?

question

Makes a statement about how the world operates, Can be tested against the facts

answer

A Positive statment

question

Positive statement

answer

The statement that " increases in the tax of gasoline increase the price of gasoline" is an example of a

question

If we reduce welfare payments given to the poor, they will find jobs.

answer

Which of the following is a positive statement?

question

describe how the world ought to be, depend on peoples values and cannot be tested.

answer

Normative statements

question

Flood victims should pay their own rebuilding.

answer

Which is a normative statement?

question

other things remain the same

answer

The Latin phrase Ceteris paribus

question

holding all other relevant factors the same

answer

Economists try to isolate the effect of one variable at a time they do so by,

question

correlation

answer

The tendency for the values of two variables to move together in a predictable and related way is

question

how two variables move together in a predictable way

answer

When economists use the term correlation they are referring to

question

is named the x axis

answer

The horizontal axis in a graph

question

y axis

answer

Most economic graphs have two lines perpendicular to each other. The vertical line is called the

question

scatterplot

answer

Know what a scatter plot is

question

shows how variables change over time

answer

a time series graph

question

a general tendency for a variable to rise or fall

answer

A trend is

question

downward trend

answer

The above figure

question

cross section graph

answer

You have data for the amount of rainfall in 50 cities from June the type of graph to best display data

question

CHAPTER 2 BEGINS NEXT.....

answer

DONE WITH CHAPTER 1

question

you deserve it ... questions 50-100 are chapter 2

answer

take a break

question

consumption goods and services

answer

Items that are purchased by individuals for their own enjoyment are called..

question

a personal computer purchased in order to play games at home

answer

Which of the following is a consumption good or service?

question

Rhianna gets a haircut

answer

What would be an example of a consumption service?

question

Consumption goods and service

answer

The largest share of total production in the US is

question

capital goods

answer

Items bought by a business to help produce other goods and services are called

question

capital goods are used to produce additional goods while consumption are not.

answer

Difference between consumption and capital goods is that

question

18

answer

Goods and services bought by the govt account for around_____ percent of total.

question

the local drivers license office purchase camera

answer

What would be an example of a government good?

question

exports

answer

Goods produced in the US and sold in other countries are called

question

Technology is not one

answer

Which of the following is not a factor of production

question

Land, labor,capital, entrepreneurship

answer

Goods and services are produced using 4 factors of production

question

land

answer

The productive resource that includes all the gifts from nature is

question

human skills, that is quality of labor

answer

the concept of human capital describes

question

the physical goods used to produce other goods and services

answer

Capital as a factor of production refers to

question

A drill press in your local machine shop. ( note that money is not one)

answer

Capital as a factor of production. Which is an example

question

stocks and bonds sold by pepsico

answer

Which of the following is not considered capital?

question

capital. interest

answer

The owners of resources________ are pair_________

question

human resource that organizes labor, land and capital

answer

Entrepreneurship, as a factor of production refers to

question

rent

answer

Income paid for the use of land is

question

Entrepreneurship

answer

Which factor of production is paid PROFIT

question

Labor earns most of the income

answer

According to the functional distribution of income, in the US

question

3

answer

In the US the poorest 20 percent of households receive roughly ________ percent of total income

question

50

answer

The richest 20 percent of individuals receive about _____ of the nations total income

question

5

answer

The US population is roughly _______ of world population

question

developing; emerging

answer

Most people live in _______economies and the fewest people live in _______economies

question

EASTERN Europe

answer

Emerging market economies are located primarily in

question

Developing Economy

answer

Nigeria would be classified by the IMF as

question

american troops build roads in Iraq

answer

Which of the following is an example of an effort to decrease physical capital differences between advanced and developing

question

US

answer

Of the following the country with the highest average income per day in the world is

question

Hong Kong, Japan, France, UK

answer

Which of the following groups of countries are ALL advanced?

question

more; more

answer

Compared to Developing economies, the advanced economies have________ human capital and _______ physical capital

question

Households; firms determine

answer

________ the owners of the factors of production, while ________ what amounts of those factors to hire

question

a market is any arrangement that brings buyers and sellers together

answer

Dan missed class the day the professor covered the circular flow model. Dan asked a friend Joan to explain markets to him. Joan said,

question

coordinated by markets

answer

The decisions of firms and households are

question

flow of expenditures and incomes in the economy

answer

The circular flow model is used to show the

question

goods market

answer

In the circular flow model, consumption goods are bought and sold in the

question

Businesses to households

answer

In the circular flow model shows that goods and services flow from

question

ONLY households

answer

In the circular flow model, which of the following owns the factors of production?

question

only firms

answer

In the circular flow model, who hires the factors of production in the factors market?

question

the govt buys goods and services from firms

answer

In the circular flow model

question

providing legal and social framework for economic activity

answer

Which of the following is a function of the US Govt?

question

collecting property taxes

answer

Which of the following is NOT a function of the federal Govt?

question

Medicare and Medicaid

answer

The largest component of govt spending is for

question

Social security taxes

answer

Of the following the fed govt obtains most revenue from

question

education

answer

The largest expenditure by the state and local govt is for

question

tax revenue

answer

State and local govt finance expenditures mainly from

question

state and local govt

answer

Property taxes are a major revenue for

question

labor

answer

in the figure above which represents a real flow of factors of production

question

Interest

answer

In the figure above which represents money flow

question

Capital

answer

which represents a real flow?

question

We are moving on to chapter 3

answer

Take a breather...

question

14 trillion

answer

The US Produced approx. ______ worth of goods and services in 2007?

question

Max combinations of goods and services that can be produced

answer

The Production Possibilities frontier illustrates the..

question

boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced given the available factors of production and the state of technology

answer

The Production Possibilities Frontier is the...

question

increasing the production of one good and decreasing the production of another

answer

Moving from one point to another on the PPF implies

question

It would shift inward because some of the nations resources such as capital, labor would be destroyed.

answer

A major earthquake occurs in the central part of the US. What impact would this have on the PPF frontier why?

question

the economy is producing at a point on its PPF

answer

When all the available factors of production are being efficiently employed the

question

production efficiency

answer

If an economy cannot produce more of one good without producing less of another this implies that which of the following is achieved?

question

An economy is producing at a point withing PPF There are unemployed resources

answer

When production efficiency does NOT occur

question

an unattainable production

answer

Point d ( outside of PPF)

question

A B C And D

answer

The above figure show the production possibility frontier for an economy the point or points that are attainable are

question

of trade offs, that in order to produce more one of good, the nation must produce less of another

answer

The negative slope of the PPF represents the idea that

question

on the PPF

answer

The saying there is no such thing as free lunch applies

question

scarcity of resources

answer

A reason the PPF exists is

question

increase in the quantity of other item obtained.. Loss/Gain

answer

To calculate opp cost per unit, you divide the decrease in the quantity of the forgone by the

question

2 lbs of apples.. (500-300=200) and (1200-1300= 100) 200/100 = 2 apples

answer

On a PPF 500 lbs of apples and 1200 lbs of bananas can be produced while at the other point on the same frontier 300 lbs of apples and 1300 of bananas . between these points what is the opp cost of producing a pound of bananas?

question

1/3 of a gallon of ice cream for a gallon of milk. (loss/ gain) Lost 1 gallon of ice cream gained 3 gallons of milk

answer

The fig above shows PPF for a country. The opp cost of a gallon of milk between combination A and B is.

question

is 0

answer

Moving from a point inside the PPF to a point on the PPF the opp cost of producing more of the good on the horizontal axis

question

Increasing opp cost

answer

Why is a PPF bowed out? CONCAVE

question

B and C

answer

Bowed out PPF shows

question

Constant

answer

If the PPF between 2 goods were a straight line then the opp cost of one good in terms of another

question

Take the inverse

answer

Once you find the opp cost of producing one unit of good to find the opp cost of producing another good you must

question

a ratio of quantities

answer

The opp cost of producing more of one good on the PPF is

question

1 million suvs

answer

The Fig above shows the ppf for a country. In order for it to move from producing at A to producing at B the country would need to incur an opp cost of

question

1/2 of a truck (Loss /Gain)

answer

Moving between two points on the PPF a country gains 6 autos and forgoes 3 trucks the opp cost of 1 auto is

question

Improving quality of labor, technological advances, increasing amount of capital

answer

Economic growth depends on which of the following

question

its PPF shifts outward

answer

As an economy grows

question

Consumption goods

answer

What is the opp cost of economic growth

question

PPF2

answer

Suppose India and Fr have the same PPF shown, based on current production points which is India most likely?

question

Encourage education increases quality of labor

answer

To increase economic growth a nation should

question

its economic growth will slow down

answer

If a nation devotes a larger share of its current production to consumption goods then

question

Germany

answer

Suppose Germany , France, Estonia, and India have the same PPF . based on production points which is more likey PPF 3

question

Holy has a competitive advantage at cutting grass.. ( not too sure about this answer)

answer

Hank requires 1 hour to cut the grass and 3 hours to clean the house, His sister holy requires 1 hours to cut the grass and 4 hours to clean the house which of the following is true?

question

2 shoes

answer

In the US can use all the resources to produce 250 dvds or 500 shoes china can use all of its resources to produce 30 dvds and 300 shoes the opp cost of producing a DVD in the us is

question

produce the good at the lowest opp cost

answer

A country has a comparative advantage in the production of a good if it can

question

1 1/2 jackets... loss / gain ( loss jackets/ gain dresses)

answer

In the table above how many jackets must mary forgo for every dress she makes

question

2/3 of a jacker

answer

In the table how many jackets must mark forgo for every dress

question

1 1/2 and 2/3

answer

In the above table, for mary the opp cost of producing a dress is _____ and the opp cost for mark is _____

question

benefit from trade

answer

Having a comparative advantage means a nation can

question

forgoing the fewest units of one product to produce unit of another

answer

Which of the following best describes a comparative advantage

question

Country A has a comparative advantage over county B in planes

answer

If country A can produce an extra place by giving up 2 boats and country b can produce a plane by giving up 3 boats then

question

1/2 lb of clothing, 2 lbs of food.

answer

In the table above jacks opp cost for 1 lb of food is ____ and his opp cost for 1 lb of clothing is

question

1/3 of clothing, 3 pounds of food

answer

In the table above jills opp cost for 1 lb of food is ______ and her opp cost for 1 lb of clothing is ____

question

40

answer

Deb and Pete have volunteered to help their favorite charity mail out fundraiser info. the fig above shows their PPF If Deb spends all her time assembling packets how many can she assemble.

question

160

answer

Deb and Pete have volunteered to help their favorite charity mail out fundraiser info. the fig above shows their PPF If deb and pete specialize and trade how many packets will be assembled

question

Specialization and trade allow people to consume outside their individual PPF

answer

What is gained when people engage in specialization and trade?

question

specializes in the producing a good in which it has a lower opp cost.

answer

To achieve gains from a trade a country

question

but it can still benefit from specialization and trade

answer

The US is one of the richest rations in the world

question

consume but not to produce combinations of goods that lie beyond PPF

answer

Being specialized and trading a country can

question

will have a comparative advantage in producing that good

answer

If a nation has an absolute advantage in producing a good then it

question

Mac has a comparative advantage in baking cookies.

answer

Mac can bake more cookies then Monica per hour it must be true that

question

any arrangement that brings buyers and sellers together

answer

A market is defined as

question

has so many buyers and sellers that no one can influence the price

answer

Which of the following is true about Competitive market?

question

there is a movement up along the demand curve to a smaller quantity demanded

answer

The law of demand refers to the fact that other things remain the same when price of goods rises

question

decrease in quantity of gas demanded

answer

Gas increases by 50 percent and other things remain the same, as a result there is a

question

the amount of a good people are able and willing to buy during a specific time period and at a given price

answer

What is "the quantity demanded"

question

movement along the demand curve

answer

An increase in quantity demanded is shown as a

question

is a list of quantities demanded at each different price when all other influences on buying plans remain the same.

answer

a demand schedule

question

Represents the law of demand

answer

The downward slope of the demand curve

question

is the horizontal sum of individual demand curves

answer

The market demand curve

question

Shift of the demand curve

answer

the phrase A change in demand

question

the price of a good

answer

Changes in which of the following factors do NOT shift the demand curve

question

Demand for Apple decreases ( dell is cheaper there for the demand will go up and the demand for apple will decrease)

answer

Consumers regard Dell and Apple as substitutes if the price of Dell decrease

question

normal good

answer

If the demand for a camera increases when consumers income rises then the camera is a

question

The demand decreases and the demand curve shifts leftward

answer

What happens to the demand for a good if a complements price increases

question

Demand for cars decreases

answer

Car insurance and cars are complements. If the price of car insurance increases the

question

A decrease in price of pizza

answer

In the fig above the movement from point a to point b reflects

question

an increase in the price of sub sandwich , a substitute for pizza

answer

In the above figure the shift in the demand curve from d to d1 can be result from

question

the expectation that future income will be higher

answer

Which of the following increases the demand for a good?

question

an inferior good

answer

A NY student use to ride red hound, she got a a better job and took the plane, the red hound was a

question

studies that cell phones cause cancer

answer

Consider the market of cell phones . which of the following shifts the demand curve left?

question

60

answer

The table gives a demand schedule for lattes, if the price of a latte is 3, the quantity demanded is

question

demand curve for suvs shifts to the left

answer

The number of buyers of sports vehicles, SUVs decreases sharply, so the

question

able and willing

answer

To be part of the supply for a good, a producer must be

question

decrease in quantity of Kayaks ( if I am a supplier and I can only charge a small amount for my kayaks I will not supply as many, if i charge alot for them then i will supply more)

answer

the Law of supply states that other things stay the same, a decrease in price of Kayak leads to

question

Slopes upward

answer

A supply curve

question

an increase in price of Cds

answer

Which of the following increases the quantity supplied of CDs but does not increase the supply of Cds

question

a fall in the price of fertilizer used to grow them

answer

Which of the following shifts the supply curve of potatoes rightward?

question

a decrease in quantity supplied of a good in question

answer

A decrease in the price of complement of production leads to

question

The supply decreases

answer

if the auto workers union successfully negotiates a wage increase for its members how does the wage hike affect the supply of autos?

question

supply of memory chips increases

answer

If the number of companies producing memory chips increases then

question

an increase in foreign imports of the good or service

answer

Which of the following results in an increase in the supply of a good or service

question

increases supply of corn

answer

Researchers have found a hybrid of corn that is cheaper to grow. this tech break through

question

decrease cost of production

answer

Advances in productivity increase supply because they

question

There is no change to the supply of salsa but the quantity of salsa increases

answer

Price of salsa rises. how does the increase in the price of salsa affect the supply?

question

a higher price brings a greater profit so firms want to sell more of that good

answer

One reason supply curves have an upward slope is because

question

the quantity demanded equals quantity supplied

answer

Market equilibrium occurs when

question

occurs at the intersection of the supply and demand curve

answer

Market equilibrium

question

the price of rice falls

answer

When a surplus of rice occurs

question

then there is a shortage

answer

If the price is below the equilibrium price

question

quantity of parking spaces demanded is greater then the quantity of parking spaces supplied

answer

When there is a shortage of parking spaces the

question

Rises, and increases

answer

Assume a competitive market in in equilibrium there is an increase in the demand, but no change in supply. as a result the equilibrium price _______ and the equilibrium quantity ___.

question

quantity supplied increases

answer

When the demand curve shifts rightward and the market moves to a new equilibrium then the

question

falls and decreases

answer

Bagels and cream cheese are complementary goods suppose that the price for flour increases. The equilibrium price for cream cheese ________ and the equilibrium quantity of cream cheese___

question

equilibrium price of peaches falls, and quantity increases

answer

If good weather conditions results in larger then normal crop for peaches then the

question

decreases and rises

answer

In GB raising taxes on gas has increased the cost of supply gas as a result the quantity of gas _____ and the price of gas ______

question

e

answer

The above figure shows market for pizza. The market is in equilibrium when peoples income decreases . if pizza is a new price and quantity

question

im tired...

answer

figure out the rest last 3 questions on your own

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