Which of the following is not one of the three basic economic questions?

How much are things going to cost?

Which of the following best describes human capital?

knowledge or experience of workers

Why does scarcity exist?

Limited resources to meet our unlimited wants & needs

Which of the following best describes opportunity cost?

next best alternative you give up when you make a decision

If you tend to favor things as they have always been and that influences your decision making

you are giving in to the status quo bias

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Chp 1-3 Review

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Review for chapters 1-3

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Questions 20

Answers

1
Which of the following is not one of the three basic economic questions?
How much are things going to cost?
Who is going to get the things produced?
How is it going to be produced?
What is going to be produced?
2
The United States is an example of which type of economic system?
traditional
command
market
mixed
3
Point B represents
efficiency
inefficiency
an unattainable point
equilibrium
4
In order to move to a point like "x", an economy would need to experience
an increase in resources
a decrease in the population
an increase in investment
a decrease in human capital
5
Which of the following best describes human capital?
man-made tools used in the production of other things
knowledge or experience of workers
the natural resources used to produce things
the effort one exerts on work
6
Why does scarcity exist?
Limited resources to meet our unlimited wants & needs
When consumers demand more than producers supply
When producers supply more than consumers demand
Same thing as a shortage
7
North Korea is an example of which type of economic system?
market
command
traditional
mixed
8
How might a natural disaster affect a PPC?
cause it to explode
cause it to contract
cause it to stay the same
cause it to expand
9
Which of the following is not a basic economic question?
How is going to be produced?
What is going to be produced?
Who will get what is produced?
Why are we producing things?
10
Any cost that has already been paid and cannot be recovered is called what?
an opportunity cost
a marginal cost
a sunk cost
a tradeoff
11
In this system, the three economic questions are answered by habits and customs.
command
traditional
market
mixed
12
How might an influx of immigrants affect a PPC?
cause no change
it will move in a way that is unimaginable to the human mind
cause it to expand
cause it to contract
13
Point A represents
efficiency
an unattainable point
underutilization of resources
equilibrium
14
In this economic system, the government answers the 3 economic questions.
mixed
command
market
traditional
15
Which of the following is not one of the basic economic resources?
labor
capital
land
services
16
When you make a decision, you should consider all of the following except the
benefits from other decisions that you must give up
marginal costs
sunk costs
opportunity costs
17
Which of the following best describes opportunity cost?
same thing as tradeoffs
next best alternative you give up when you make a decision
all the alternatives you give up when you make a decision
costs that are in the past and non-recoverable
18
A rational decision maker is one who
maximizes their total benefit
maximizes their marginal benefit
maximizes their net benefit
minimizes their sunk costs
19
If you tend to favor things as they have always been and that influences your decision making
you are letting sunk costs matter
overconfidence is clouding your judgment
you are falling victim to faulty framing
you are giving in to the status quo bias
20
When you make quick decisions without analyzing the full costs & benefits, you are
being too impatient
letting sunk costs matter
falling victim to faulty framing
giving in to the status quo bias

Chp 1-3 Review Flashcards | StudBud