Economics Exam 1

Front 1

Economic Perspective is a viewpoint that individuals and institutions make rational decision by comparing the _________________ (mb) and _________ (mc) of their actions.

Back 1

Marginal benefits

Marginal costs

Front 2

Scarce economic resources means limited ______ and services. Scarcity restricts options and demands choices.

Back 2

Goods and services

Front 3

What does "there is no free lunch" imply?

Back 3

It implies that nothing is free. If someone offers to buy your lunch, the lunch maybe free for you, but it's not free for them. Essentially, nothing is free.

Front 4

To obtain more of one thing, society forgoes the opportunity of getting the next best thing. This is called? (OC)

Back 4

Opportunity costs

Front 5

Pleasure, happiness, or satisfaction are referred to as (U)

Back 5

Utilities

Front 6

Purposeful behavior means that people make decisions with some desired outcome in their mind.

Back 6

Purposeful decisions are not random or chaotic but ______________ and ______________.


Purposeful or rational

Front 7

Self-interested behavior is behavior designed to increase personal satisfaction.

Front 8

Marginal analysis is the comparison of ______________ (Mb) and ______________ (mc) usually for decision making.

Back 8

Marginal benefit, marginal costs

Front 9

The marginal _____________ of a larger size diamond is the added expense beyond the cost of the smaller size diamond. The marginal __________ is the perceived greater lifetime pleasure (utility)

Back 9

cost, benefit.

Front 10

Economic principles are expressed as the ___________ (T) of typical or average consumers, workers, or business firms.

Back 10

Tendencies

Front 11

The other things equal assumption assumes that all variables except those under immediate consideration are held ______________ (C) for a particular analysis.

Back 11

constant

Front 12

Many economic models are expressed ___________.

Back 12

Graphically

Front 13

Microeconomics is the part of economics concerned with decision making by individual consumers, households, and business firms. Macroeconomics examines....

Back 13

Examines either the economy as a whole or its basic subdivisions or aggregates, such as the governemnet, household, and business sectors.

Front 14

What is an aggregate?

Back 14

An aggregate is a collection of specific economic units treated as if they were one unit. i.e. lumping millions of consumers in the u.s. economy and treating them as one huge unit.

Front 15

Does Bill Gates have limited income?

Back 15

Yes. We all have a finite amount of income/

Front 16

We have virtually unlimited wants. We desire various goods and services and provide utility. Our wants extend over a wide range of products, from necessities to luxuries. Which of the following are necessities and which are luxuries?

Food

Perfumes

Shelter

Yachts

Clothing

Sport car

Back 16

Necessities (food, shelter, clothing)

Luxuries (perfumes, yachts, sports car)

Front 17

A budget line is a schedule or ____________ (c) that shows various combinations of two products a consumer can purchase with a specific money income.

Back 17

Curve

Front 18

All combinations of two products inside the budget line is ____________ (a) and everything beyond it is _______________ (u).

Back 18

Attainable, Unattainable

Front 19

Constant __________ cost is the straight-line with a constant slope.

Back 19

constant OPPORTUNITY cost

Front 20

Limited income forces people to choose what to buy and what to forgo to fulfill ___________. (w)

Back 20

Wants

Front 21

The location of the budget lines varies with money income. An increase in money income ______ (s) the budget line to the ______. (r) A decrease in money income shifts it to the __________ (l).

Back 21

shifts, right, left

Front 22

What are economic resources?

Back 22

What goes into the production of goods. More specifically though, the land, labor, capital, and entrepreneurial ability used in the production of goods and resources.

Front 23

Land includes all natural resources "gifts of nature. Such as mineral and oil deposits, arable land, forests, and water resources.

Back 23

GOOD JOB READING.

Front 24

The resource labor consist of the _________ actions and mental activities that people contribute the production of goods and services.

Back 24

Physical

Front 25

__________ (C) includes all manufactured aids used in producing consumer goods and services.

Back 25

Capital

Front 26

The purchase of capital resources, such as the production and accumulation of said capital goods is called an ______________. (I)

Back 26

Investment

Front 27

Consumer goods satisfy wants directly, while capital goods do indirectly by aiding the production of consumer goods. Large commercial baking ovens are __________, while the loaf of bread PRODUCED is a ____________.

Back 27

Capital good, consumer good

Front 28

___________refers to tools, machinery, and other productive equipment.

Back 28

Capital

Front 29

_______________ ability is the human talent that combines the other resources to produce a product,mae a strategic decisions, and bear risks.

Back 29

Entrepreneurial

Front 30

Because land, labor, capital, and entrepreneurial ability are combined to produce goods and services, they're called the __________ of _____________.

Back 30

Factors of production

Front 31

Full employment implies that the economy is employing all of its available resources.

Fixed resources implies that the quantity and quality of the factors of production are fixed.

Fixed technology means that the state of technologies constant.

Two goods The economy is only producing two goods. ___________ and _____________.

Back 31

Consumer and capital

Front 32

A production possibilities table its the different combinations of two __________ (p) that can be produced with a specific set of resources, assuming full employment.

Back 32

Products

Front 33

An economy typically produces both _________ and __________ goods.

Back 33

Capital and consumer