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Limits, Alternatives, and Choices Flashcards | StudBud

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Limits, Alternatives, and Choices

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The basics of economics

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Questions 7

Answers

1
Which one of the following expressions best states the idea of opportunity cost?
"He who hesitates is lost."
"A penny saved is a penny earned."
"There is no such thing as a free lunch."
"All that glitters is not gold."
2
Most of the disagreement among economists involves:
normative statements.
facts.
positive statements.
principles.
3
The term "ceteris paribus" means:
that if event A precedes event B, A has caused B.
that economics deals with facts, not values.
prosperity inevitably follows recession.
other things equal.
4
A person should consume more of something when its marginal:
benefit exceeds its marginal cost.
cost equals its marginal benefit.
benefit is still positive.
cost exceeds its marginal benefit.
5
Keynes and Hayek, main difference is
None
Hayek is red Keynes is blue
Keynes prefers fix market via demand side, Hayek via supply
both
6
For economists, the word "utility" means:
purposefulness.
versatility and flexibility.
pleasure and satisfaction.
rationality.
7
Hayek believed that if government takes care of producer welfare first then eventually
none of the above
eventually consumer welfare will also be enhanced
consumer will do poorly
people will have more fun