Ch. 1 & 2 Quiz!

Which of these terms is most closely related to trade-offs?

Any factor that encourages a person to do something

Branch of Economics that describes how things SHOULD be done:

Why are tradeoffs necessary?

What motivates people to establish new businesses or expand on existing ones?

Which of the following is not a market?

What scenario best illustrates the law of diminishing marginal utility

A production possibilities curve helps determine

Branch of Economics that uses objective analysis to find out how the world works and describes how things are:

The need to make choices exists because

When Amy returns a good library book w/out finishing it so she won’t have to pay late fee, what is her opportunity cost?

Why is Adam Smith considered one of the most influential people in history?

What is the best title for this list? • innovator • strategist • risk taker

The condition that results because people have people have limited resources but unlimited wants

Comparing the costs of an action with the benefits of that action

Opportunity cost:

Which statement is the best example of thinking at the margin?

What is the best test of an economic model?

What are the factors of production?

Which of these terms is most closely related to tradeoffs?

Which kind of economy is most common today?

Many decisions involve choices about using or doing a bit more or less of something rather than making a large change

The study of how people choose to use their limited resources to satisfy their unlimited wants:

The economic principle that people are motivated by something to take a particular course of action.

People’s wants are unlimited. This fact means that which of the following is always present?

All economic choices involve

What is the law of unintended consequences?

Which of these statements is an example of normative economics?

When a student acts out, doesn't do homework, never studies for tests, that student should keep which principle in mind?

Economists assume people choose something when its expected costs are less than its

The fact that you didn't make your own clothes or grow your own food best represents which economic principle?

As an economic term, land refers to