The Economic Way of Thinking

Question 1

Which term means "making decisions based on what you believe is the best combination of costs and benefits?"

Accepted Answer

economizing

Question 2

What is the process of changing from private ownership to government ownership?

Accepted Answer

nationalizing

Question 3

Which economic system is based mainly on individual choice?

Accepted Answer

market economy

Question 4

Which of these situations describes scarcity?

Accepted Answer

Human wants exceed available resources

Question 5

Into what four categories do economist divide factors of production?

Accepted Answer

land, labor, capital, entrepreneurship

Question 6

The benefit received from using one more unit of a good or service is the ____

Accepted Answer

marginal benefit

Question 7

What does the saying "There is no such thing as a free lunch" mean?

Accepted Answer

everything costs something

Question 8

The ongoing tension of not having enough resources to meet human wants is called ____

Accepted Answer

scarcity

Question 9

Which of the following would microeconomics study?

Accepted Answer

the work habits of students

Question 10

What is the study of how people choose to use scarce resources to satisfy their wants?

Accepted Answer

economics

Question 11

The value of what you give up in order to get something else you want is the ___

Accepted Answer

opportunity cost

Question 12

A benefit that is offered to encourage people to act in a certain way is called ___.

Accepted Answer

incentive

Question 13

Simplified representations of complex economic activities are called economic ___

Accepted Answer

models

Question 14

PPC is an acronym for ___.

Accepted Answer

production possibilities curve

Question 15

What is the additional cost of using one more unit of a product?

Accepted Answer

marginal cost

Question 16

The benefit or satisfaction gained from the use of a good or service is called ___

Accepted Answer

utility

Question 17

Which of the following would macroeconomics study?

Accepted Answer

a general rise in the stock market

Question 18

Which of the following best describes wants?

Accepted Answer

unlimited and ever changing

Question 19

What do points inside the curve of a PPC indicate?

Accepted Answer

not all resources are fully employed

Question 20

The condition in which economic resources are not being used to their full potential is called ___.

Accepted Answer

underutilization

Question 21

Physical products that can be purchased are called ____

Accepted Answer

goods

Question 22

Which of the following involves using resources to produce the maximum amount of goods and services?

Accepted Answer

efficiency

Question 23

Benefits offered to encourage people to act in certain ways are ___

Accepted Answer

incentives

Question 24

Which of the following buys goods for personal use?

Accepted Answer

consumer

Question 25

Which is not considered a need?

Accepted Answer

television

The Economic Way of Thinking

Questions 25

The Economic Way of Thinking

Questions 25