BJU Economics Ch 1

What is the solution to the diamond-water paradox?

A trip to the supermarket, a class on business, and the crashing stock market are all examples of...

What problem does the diamond-water paradox address?

Unlimited wants and limited resources produce...

You get 5 utils if you buy shoes and 11 utils if you buy Chipotle. What is your net utility if you only go to Chipotle?

Intrinsic value -

Recycling is the application of what biblical principle?

Stating that "interest rates should be 0%" is an example of...

Positive economics focus on value judgments.

The value people place on a good or service is known as the

Stating that "my banks interest rates are 0%" is an example of...

An example of a nuisance good is a...

A tangible thing that has a measurable life span -

Study of large-scale economic choices and issues that impact everyone

A person's responsibility to make proper choices with his or her resources -

an intangible item or activity -

When the opportunity benefit is _____ than the opportunity cost, a rational person will make that choice.

Opportunity cost -

Examples of microeconomics:

Study of economic choices made by individual units

Examples of macroeconomics:

The government limiting imports is an example of normative economics.

The economic concept of scarcity is reflected in the conservation of natural resources.

Stating that "national interest rates are 0%" is an example of...

Candy is the lowest price it has ever been - you buy it all. What is one economic concept this decision illustrates?

a tangible thing provided by God in nature

Observation, prediction, and control are all factors that make economics a science.

Utility -

What would cause a free good to become an economic good?

Stating that "interest rates are 0%" is an example of...

Economically speaking, scarcity of a natural resource means that your supply is running short.

Based on the principle of subjective value, which is more valuable: family photos albums or expensive paintings?

The Broken Window Fallacy illustrates...

Opportunity benefit -

Subjective value -

The science of how and why people, businesses, and governments make the choices they do.

imaginary unit of satisfaction

What determines the value of an object?

Scarcity -