Module 1 Exam

This field of economics focuses on the whole, i.e. the city, State, country, or world.

When voters convey contradicting preferences to representatives.

Normative Economics deals with statements of fact.

When insurers are unable to individually discriminate so they assess risk based on the entire pool is Adverse Selection.

The Policy which aims to resolve externalities by enforcing private property.

Which of the following are institutions of capitalism?

A decentralized economic system is characterized by the social control of the means of production.

Which of these is an example of a private good?

Law of Demand says that, all else equal, as prices fall, the quantity demanded rises.

The Law of Supply states, all else equal, if price increases, supply increases.

When regulatory agencies are run by those entities that they are designed to regulate is called Rent-Seeking.

The means of production are land, labor, entrepreneurship, and?

Quasi Goods are Private Goods that Governments can produce due to negative externalities.

The viewpoint that envisions individuals and institutions making rational decisions in their own self-interest.

In a capitalist system, every individual will receive what is produced by society so long as they work.

The collapse of the coal industry in West Virginia by the advent of hydraulic fracking is an Ex. of what term?

If we were to subsidize the production of electric cars, we should expect price to rise and output to increase.

If household income rises $5,000, we should expect to see prices to rise and output to increase.

If we cut taxes and we experience high immigration, what should we expect to happen within a market?

We see a shift in preferences away from hamburgers to tacos, for hamburgers, we should expect?

The chronic failure of Socialist systems to produce shortages and surpluses is foremost caused by the incentive problem.

The term for when a third party experiences a benefit/cost from a transaction.

Which of these are reasons for why the Demand Curve is downward sloping?

The Production Possibilities Frontier shows the potential production allocations for a country of two goods.

In a Market System, determining what goods and services that will be produced is driven by what?