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Economics Unit 1
Economics Unit 1
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Economics unit 1
Flashcards
40 cards
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Practice quiz
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Host live
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Questions
40
Answers
1
What is one likely result of overconfidence?
People hesitate to open businesses or buy homes.
People buy unnecessary goods just because they are on sale.
People underestimate how much money they should save.
People refuse to shop at some businesses without good cause.
2
What does the circular-flow diagram show?
allows households to make transactions between one another.
the role of savings and investment behavior in an economy.
the economic relationship between households and businesses.
allows businesses to make transactions between one another.
3
How much less butter is produced at point F than at point E?
100 less
200 less
0
400 less
4
Indicate the change in the PPF if a country increases the number of farm and factory workers
no change
shift of the frontier
movement along the line of the frontier
5
Measured in dollars, the benefit of a choice minus the cost. Provides the gain from the choice
Marginal benefit
Net benefit
Marginal cost
Net cost
6
A privately owned organization that produces goods and services and sells them to others
public good
household
firm
property right
7
A collection of buyers and sellers, wherever they may be is a:
society
entrepreneur
economy
market
8
People who are reluctant to change, and do things the same way they always have are:
framing their decision
falling victim to the status quo bias.
being too impatient.
.letting sunk costs matter.
9
To be efficient, where is the optimum place to be on the graph?
Point H
Point G
anywhere along the PPF line
10
Type of economy in which profits motivate sellers and self-interest drives buyers.
command economy
traditional economy
mixed economy
market economy
11
The study of how people make decisions and how those decisions affect others in the economy
macroeconomics
positive economics
microeconomics
normative economics
12
The study of what the world is like and why it works the way it does
microeconomics
normative economics
macroeconomics
positive economics
13
In terms of pizza slices, what is the opportunity cost of the first sandwich?
one slice
$2
$1
two slices
14
Minimal amounts of food, water and shelter necessary for survival are known as
goods
resources
needs
wants
15
You try a new type of sandwich and dislike it at your first bite. What should you do?
Be sure to buy one on sale next time
Eat it anyway because you already spent money on it
Throw away the sandwich and buy a new one that you like
Avoid the deli in the future cause you were treated unfair
16
Good/service that can be consumed by many people at once but others can't be prevented from use
property right
public good
product good
regulation
17
Which type of Jacket should you choose?
cloth
microfiber
nylon
leather
18
You buy a car for $2000 only to find out later that it needs $500 in repairs, your sunk cost is
$500
$2500
$2000
$1500
19
Why would production at point G be inefficient?
There are too many resources and not enough workers
The amount of guns and butter are unequal
More of each good could be produced, resources available
There is not enough butter to produce guns
20
A simplified representation of reality is
a cost
a resource
a tradeoff
a model
21
You decide to nap instead of study for Economics. Your opportunity cost:
a better grade on the test
getting more sleep
feeling rested
22
A measure of the wealth of goods & services available to help people live comfortably.
standard of living
social safety net
economic security
economic freedom
23
The confidence of citizens in their ability to support themselves and their families
Social safety net
Economic freedom
Standard of living
Economic security
24
Indicate the change in the PPF if a country has an increase in demand by the military for guns
movement along the line of the frontier
shift of the frontier
no change
25
Calculate the net benefit of the cloth jacket
$5
$10
-$5
$20
26
Each member of society shares equally in what the economy produces
Social safety net
Equality of outcome
Equality of opportunity
Economic growth
27
Represents the combination of the two items that you can afford if you spend you budget
opportunity cost
budget line
sunk line
budget
28
If you had unlimited time and money to spend, the opportunity cost of any decision would be:
time
money
0
29
Type of economy in which wages and distribution are controlled by government planners
mixed economy
traditional economy
market economy
command economy
30
In terms of sandwiches, what is the opportunity cost of the first slice of pizza?
$2.50
$3.00
two sandwhiches
half a sandwhich
31
Why do rational decisions sometimes turn out to be wrong?
Not all goals can be met through rational decision-making.
Opportunity costs are too hard to weigh
Rational decisions are usually selfish ones.
Unexpected or unknown factors may affect the outcome.
32
The additional benefit of taking the next step and doing something one more time
Net cost
Marginal benefit
Marginal cost
Net benefit
33
The study of the way things should be rather than the way things are
macroeconomics
normative economics
microeconomics
positive economics
34
Which of the following is most closely associated with larger social safety nets?
higher unemployment levels
lower transfer payments
higher taxes
smaller governments
35
What question is being asked when Netflix replaces TV as the most popular way to watch shows?
What should be produced
How should it be produced
For whom should it be produced?
36
Indicate the change in the PPF if a country closes some farms and workers are now unemployed
movement along the line of the frontier
shift of the frontier
no change
37
Type of economy in which skills are handed down to family members through generations
mixed economy
command economy
traditional economy
market economy
38
Shows the max quantity of one good that can be produced for each possible quantity of another
a resource
a tradoff
a production possibilities frontier
a cost
39
Which question is being asked when the government enacts workplace safety regulations
What should be produced
For whom should it be produced?
How should it be produced
40
Economics is
the study of choice under conditions of scarcity
the study of money
the study of markets and prices
the study of government
