Economics Chapter 1

a limited quantity of a good or service

an imaginary unit of satisfaction

A rational person will always make the choice in which the opportunity cost is greater than the opportunity benefit.

National unemployment is one major topic studied in microeconomics.

When the government passes laws limiting the import of foreign cars, it is basing its decision on normative economics.

Conservation of natural resources primarily shows a grasp of which economic concept?

Which of the following examples falls into the sphere of economics?

You receive 6 utils if you buy a shirt or 10 utils if you buy a steak dinner. What will you net if you buy the steak?

What approach to economic study focuses on value judgments?

According to the Austrian economist Carl Menger, what determines the value of an object?

Which two basic economic principles create the need for choices?

As free goods become more scarce, they become economic goods.

Purchasing airline tickets for this summer as opposed to next summer due to lower pricing is an example of...

Every choice has an opportunity cost.

Grabbing family photos in the midst of a house fire instead of fine jewelry is an example of what economic concept?

What principle does Henry Hazlitt remind readers of in his story about the broken window?

What is an economist's term for the usefulness of a good or service?

To an economist, the scarcity of a natural resource, such as bananas, means that the supply has run short.

The economic cost of a good or service is...

the worth of something because of its nature

a tangible thing provided by God in nature

According to the text, ecocomics is...

What biblical concept refers to a person's responsibility to make proper choices with his reources?

the worth of something as determined by its usefulness

A broken down car must now be taken off to the junkyard. This is an example of a...

Which of the following statements is an example of positive economics?

the regret a person feels for an option not chose

the satisfaction a person receives from a choice