Econ 1

Front 1

Society's economizing problem involves:

Back 1

Scarce Resources
Opportunity Cost
Making Choices in the face of scarcity

Front 2

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

Back 2

Opportunity Costs

Front 3

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

Back 3

Aggregate

Front 4

Combination of goods that fall inside the production possibilities curve represent:

Back 4

Less total output in an economy
Goods that are Attainable
Inefficient use of Resources

Front 5

(1)_______ economic analysis concerns what is, wheras (2)_____ economic analysis embodies subjective feelings about what ought to be.

Back 5

1. Positive
2. Normative

Front 6

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

Back 6

Resources

Front 7

In comparing marginal benefits versus marginal costs of a decision, wec an assume that a decision maker is making choices _____.

Back 7

Purposefully

Front 8

Why is it in our self-interest to economize or pick and choose goods and services that maximize our satisfaction?

Back 8

Because of our limited incomes conflicting with our insatiable wants for goods and services.

Front 9

In a world of scarcity:

Back 9

The decision to obtain the marginal benefit associated with some specific option always includes the marginal cost of forgoing something else.

Front 10

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:

Back 10

A cost borne by society in utilizing these resources to produce any good or service.

No free lunch.

Front 11

Economic principles are generalizations expressed as:

Back 11

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

Front 12

What does each point on a production possibilities curve represent?

Back 12

Efficiency in production

The maximum output of two products

Front 13

The shape of the production possibilities curve is most likely bowed out from the origin because:

Back 13

Economic resources are not completely adaptable to alternative uses

Front 14

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:

Back 14

The other-things-equal assumption

Ceteris Paribus

Front 15

The economic perspective focuses on ______, therefore the decision maker must compare incremental benefits and costs.

Back 15

Marginal Analysis

Front 16

Points lying _____ the production possibilities curve are unattainable with the current availability of resources and technology.

Back 16

Outside

Front 17

The disagreement among economists involves _____, value-based policy questions.

Back 17

Normative

Front 18

Consider the relationship between the price and quantity of green apples purchased. Any other factors such as the price of red apples, incomes, and tastes and preferences are not considered. Which of the following assumptions are we considering?

Back 18

Ceteris Paribus

Front 19

Unemployment is represented on the production possibilities model as:

Back 19

Any point below the production possibilities curve

Front 20

Consumers must forego choices based on a limited budget because:

Back 20

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

Front 21

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

Back 21

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

Front 22

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

Back 22

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

Front 23

_____ in the quantity or quality of resource or factors of production result in a shift outward of the production possibilities frontier.

Back 23

An Increase

Front 24

Trade-offs arising from limited incomes give rise to:

Back 24

Opportunity Costs

Front 25

The assumption behind purposeful behavior means that:

Back 25

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

Front 26

Economic principles and models are highly useful in:

Back 26

Determining cause and effect

Understanding how the ecomnomy operates

Analyzing economic behavior

Explaining and predicting.

Front 27

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

Back 27

rational

Front 28

An Increase in income will:

Back 28

shift the budget line to the right

Front 29

True or False: Positive economics encourages value judgements.

Back 29

False

Front 30

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

Back 30

Normative

Front 31

Suppose you are gifted a $100 gift card and you choose to spend it on a number of goods. you will select a combination of goods that is best for you and that maximizes your satisfaction. In other words, your choices will account for the effects of:

Back 31

Marginal benefits and marginal costs of each good considered

Front 32

Ceteris Paribus

Back 32

Other-Things-Equal Assumption:
The assumption that factors other than those being considered are held constant

Front 33

The scientific method consists of several elements, including:

Back 33

Accepting, rejecting, and adjusting a hypothesis

Continuing to test the hypothesis against facts.

Observing real-world behavior and outcomes and formulating a hypothesis based on said observations.

Front 34

Economists devlop theories of the _____ of individuals (consumers, workers) and institutions (businesses, governments) engaged in the production, exchange and consumption of goods and services.

Back 34

behavior

Front 35

Combination of goods that fall on the production possibilities curve:

Back 35

Are efficiently produced
Utilize all of an economy's resources
Are attainable

Front 36

Each point on the production possibilities curve represents some _____ of two products.

Back 36

Output combination

Front 37

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

Back 37

Income

Front 38

Economists do not include money as an economic resource because:

Back 38

Money produces nothing

Front 39

Suppose an economy produces only two goods, consumer goods and capital goods. Its current combination of production involves a higher level of capital goods than consumer goods. Which of the following can be inferred from this current choice on its production possibilities curve?

Back 39

That its present choice in production may result in higher future prospects for economic growth.

Front 40

A budget line describes:

Back 40

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

Front 41

The law of increasing opportunity costs arises because:

Back 41

Resources are not perfectly flexible or interchangeable.

Front 42

Combinations of goods lying outside the budget line, not the PPF:

Back 42

Are unattainable, given a consumer's income

Front 43

What exemplifies that topics and subdivisions of economics can be rooted in both macroeconomics and microeconomics?

Back 43

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

Front 44

Specializing and participating in international trade allows an economy to:

Back 44

Circumvent the output limits imposed by its domestic production possibilities curve

Increase the quantities of capital and consumer goods available to society.