U received a free shirt, someone had to actually pay for it, illustrates the concept of:

TANSTAAFL ("There Ain't No Such Thing As A Free Lunch")

The definition of economics is the study of

the use of scarce resources that have alternative uses.

Which of the following does not explain how trade makes people better off?

Trade allows 4 economy 2 produce all it needs by citizens

Why are incentives important?

People respond to incentives in generally predictable ways

When considering an action, which of the following must you not do?

Primarily focus on the intent of that action

Which of the following illustrates a disincentive?

2 buy a soda you must pay an extra tax 2 get the drink

When evaluating the trade-offs of making a choice, you

evaluate the costs vs.the benefits of each possible choice

You have $20 you have 3 options, but cannot do all 3. Regardless of which you choose

UR making tradeoff by not choose 1 of the other alternatives

Which of the following is a disincentive?

U have 2 pay $75 pay-2-participate fee 2B on the FB team

Which of the following is true of Macroeconomics?

focuses on the workings of an economy as a whole

Which of the following is true of Microeconomics

focuses on econ decision made by US, household & business

"Cash for Clunkers" illustrates

the Law of Unintended Consequences

After doing a cost-benefit analysis, you generally choose the option in which

the benefits outweigh the costs

What does it mean to say the free markets are efficient?

Buyers and sellers trade until both are satisfied

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1 Econ Unit What is Economics?

25 termsStudBud Administration924 plays

What is Economics? #microeconomics #macroecomomics #incentives #disincentives #costandbenefits

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Questions 25

Answers

1
Which of the following is not a market
an online auction site
a high school classroom.
a neighborhood garage sale
a large appliance store
2
U received a free shirt, someone had to actually pay for it, illustrates the concept of:
trade-offs
opportunity cost
TANSTAAFL ("There Ain't No Such Thing As A Free Lunch")
scarcity
3
The definition of economics is the study of
the use of scarce resources that have alternative uses.
how govt dictate which bus. succeed or fail in a country.
how governments set social policy.
the influence of the Federal Reserve on history.
4
UR looking at what happens 2 the price of cranberrys, if the local crop is destroyed UR doing
macroeconomics
microeconomics
positive economics
5
Which of the following does not explain how trade makes people better off?
Trade results in + choices than if we make everything 4 us
we are not capable of making everything we need 4 ourselves
Trade allows 4 economy 2 produce all it needs by citizens
I focus on what I do best & trade w/others 4 what U do best
6
Why are incentives important?
Economist need to factor out incentives when analyzing data
People don't like incentives so they must be avoided
People respond to incentives in generally predictable ways
Incentives can save businesses a lot of money
7
When considering an action, which of the following must you not do?
Look at what incentives/disincentives R created by an action
evaluate unintended consequences, do cost outweigh benefits
Primarily focus on the intent of that action
thinking through incentives/disencentives created by action
8
UR evaluating alternative proposals 4 next years budget and making recommendations UR doing
positive economics
microeconomics
macroeconomics
normative economics
9
If you have $20 and must make a choice how to spend, but cannot do all this illustrates
resources are scarce
inflation has occurred during the past decade
consumers seek 2 + their pay, 2B able 2 afford all they want
resources are mutually exclusive
10
U have 5 jeans UR thinking of buying 1+ or could save $$. having less in savings is called
incentive
economic service
marginal cost
marginal benefit
11
Which of the following illustrates a disincentive?
2 buy a soda you must pay an extra tax 2 get the drink
If you spend $50 for video game you cannot buy gas
if you want a pretzel you will need to pay for it
because of practicing all summer you make the FB team
12
U have $40 & have 3 choice; 1st gas, 2nd date, 3rd clothes. If buy gas, the opportunity cost is
buying new clothes
both taking a date to the movies and buying new clothes
$20
taking a date to the movies
13
When evaluating the trade-offs of making a choice, you
count the number of benefits you get from your choice
evaluate the costs vs.the benefits of each possible choice
count the number of opportunity costs of making the choice
quantify each tradeoff in terms of dollars and cents
14
U have 1 pair of shoes, as U buy +, each addtl pair bring less satisfaction this illustrates
diminishing marginal utility
incentives
trade-offs
opportunity cost
15
You have $20 you have 3 options, but cannot do all 3. Regardless of which you choose
the economics of the situation do not change
UR making tradeoff by not choose 1 of the other alternatives
U will be unhappy because U wanted 2 do all the alternatives
U will not have enough $$$ 2 afford all of your alternatives
16
Which of the following is a disincentive?
U have 2 pay $75 pay-2-participate fee 2B on the FB team
U will B able 2 save $100 if U buy phone 2day instead later
U get EC 4 UR grade if U keep an organized notebook 4 class
U will B popular w/ friends if U wear certain type of cloth
17
Which of the following is true of Macroeconomics?
focuses on the workings of an economy as a whole
is concerned only about how we will spend $$ in the economy
focuses on econ decisions by US, households, & businesses
is the study of inform tech & its role in econc advancement
18
If UR predicting what will happen 2 unemployment if the govt raises income tax rates, UR doing
microeconomics
positive economics
macroeconomics
normative economics
19
Which of the following is true of Microeconomics
focuses only on the individual, as it relates to the economy
focuses on econ decision made by US, household & business
has no impact on international trade
focuses on the workings of an economy, as a whole
20
"Scarcity" means not having enough resources to do everything we would want to do
false
true
21
U have 5 jeans UR thinking of buying 1+ or could save $$. The addtl satisfaction from pair # 6
economic service
incentive
marginal benefit
marginal cost
22
U have 10 hours to study, relax and sleep. UR thinking about 1+ hour of study UR illustrating
thinking at the margin
opportunity cost
TANSTAAFL
incentives
23
"Cash for Clunkers" illustrates
the Law of Unintended Consequences
tradeoffs
opportunity costs
the Law of Diminishing Marginal Utility
24
After doing a cost-benefit analysis, you generally choose the option in which
the dollar value is the best for your budget
the costs and benefits are equal
the benefits outweigh the costs
the costs outweigh the benefits
25
What does it mean to say the free markets are efficient?
Decisions are made quickly with little confusion
Buyers and sellers trade until both are satisfied
Everyone is assured of getting the basic necessities
Information is communicated around the world

1 Econ Unit What is Economics? Flashcards | StudBud