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40 Cards in this Set

  • Front
  • Back
Economics deals primarily with the concept of:
scarcity
Economics is the study of:
how society manages its scarce resources
The opportunity cost of an item is:
what you give up to get that item
In advance of a particular trip, three seats remain unsold. The bus company could increase profit only if it:
charges any ticket price above $0
Economist understand that people respond to:
incentives
The principle that "trade makes everyone better off" applies to interactions and trade between:
-families
-states w/in the US
-nations
The "invisible hand" directs economic activity through:
prices
A shift in the possibilties frontier upwards illustrates:
economic growth
Adam Smith argued that in a market system when people act in their own self interest they typically:
help others even more than when they deliberately try to help others
The income of a typical worker in a country is most closerly linked to:
productivity
Almost all variation in living standards is attributable to differences in countries:
productivity
unemployment would cause an economy to:
produce insides its production possibilities frontier
T/F
Economics is the study of how fairly goods and services are distributed within society
False
T/F
With careful planning we can usually get something that we like without having to give up something else that we like:
False
T/F
Tuition is the single largest cost of attending college for most students
False
T/F
A market economy cannot produce a socially desirable outcome because individuals are motivated by they own selfish interests:
False
The invisible hand explains:
the trails and error process by which a market reaches equilibrium
What can change without shifting either demand or supply, ceteris paribus
price of the good itself
equilibrium price is achieved through:
trail and error
when supply of gasoline decrease the equilibrium price will increase because:
the shortage exists at the old equilibrium
Almost all variation in living standards is attributable to differences in countries:
productivity
unemployment would cause an economy to:
produce insides its production possibilities frontier
T/F
Economics is the study of how fairly goods and services are distributed within society
False
T/F
With careful planning we can usually get something that we like without having to give up something else that we like:
False
T/F
Tuition is the single largest cost of attending college for most students
False
T/F
A market economy cannot produce a socially desirable outcome because individuals are motivated by they own selfish interests:
False
The invisible hand explains:
the trails and error process by which a market reaches equilibrium
What can change without shifting either demand or supply, ceteris paribus
price of the good itself
equilibrium price is achieved through:
trail and error
when supply of gasoline decrease the equilibrium price will increase because:
the shortage exists at the old equilibrium
t/f
there are never shortages or surpluses when the price in a market is equal to the equlibrium price for the market:
true
t/f
a change in price changes the quantity demanded and is represented by a movement along the demand curve
true
t/f
The market price equals the equilibrium price if quantity demanded equals quantity supllied at the market price
true
If price of basketballs rises then we will see:
a movement to the left along the demand curve for basketballs
what would increase the demand for automobiles:
increase in consumers income
a change in quantity demanded:
movement along the demand curve
If Dell computer and HP computers are subsitutes then an increase in the price of Dell computers will result in:
and increase in the demand for HP computers
market demanded is determined by all except:
number of potential sellers
when a firm offers a higher salary to an employee of another firm and lures the employee away the firm is:
using the market mechanism
a buyer is said to have demand for a good only when
a buyer is both willing and able to purchase the good at alternative prices