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EF economics basics Flashcards | StudBud
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EF economics basics
EF economics basics
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1
Which is NOT a characteristic of homo economicus?
has complete market overview
always makes rational decisions
acts out of aversion to unfairness
has fixed personal preferences
2
Clothes and shelter are needs, but
designer clothes
and
a house
are wants.
False
True
3
Which is a characteristic of homo economicus?
maximizes his/her own utility
acts according to his/her daily mood
is influenced by peers and advertisements
is altruistic
4
An investment is an asset/item acquired with the goal of generating future income/profit.
True
False
5
Self-actualization is the highest possible need in Maslow's hierarchy.
False
True
6
You have 1 week left until the Social Studies exam. You put as much effort into studying as possible.
maximum principle
minimum principle
7
What resource are factory buildings, calculators and insecticide sprays?
human resources
natural resources
man-made resources
8
Tobi has got 50€ pocket money and wants to buy a stylish new mobile phone.
maximum principle
minimum principle
9
An employer is somebody who works for an employee.
True
False
10
What is income?
= a situation when people enter a room
= another word for "taxes"
= money that is charged by a bank for borrowing money
= money received (regularly) for work or through investments
11
Kate wants to buy a simple t-shirt and looks for the cheapest alternative.
minimum principle
maximum principle
12
A person who starts his/her own business and organizes it is known as...
... an employee
... a salesman
... an entrepreneur / manager
13
What does "altruistic" behaviour mean?
selfish behaviour
selfless behaviour
14
The model of “homo economicus” shows that people behave reciprocally and care about others.
False
True
15
The money spent by households on goods and services is called...
... interest rate
... income
... consumption expenditure
... investment
16
Natural resources are also called "land".
False
True
17
Which definition fits to the term "needs"?
Needs are selfish wants.
Needs are necessary goods in order to survive and have a healthy life.
Needs are things in life that are nice to have but not essential.
18
Which of these is an example of social needs?
friendship
food
being creative
rest
19
Which order of the five levels of Maslow’s hierarchy of needs is correct? (from bottom to top)
physiological, safety, belongingness/love, esteem, self-actualization
belongingness/love, esteem, safety, physiological, self-actualization
safety, belongingness/love, esteem, physiological, self-actualization
safety, physiological, esteem, belongingness/love, self-actualization
20
"Capital resources" is the knowledge and skills needed for production.
True
False
21
Choose one correct definition!
Goods = material items (can be seen, touched or felt)
Services = material items (can be seen, touched or felt)
Goods = amenities, facilities, benefits or help provided by other people
Services = amenities, facilities, benefits or help provided by other people
22
Moving along the hierarchy of needs can be seen like a game (you have to complete level 1 in order to play level 2 etc.)
False
True
23
A tax is a sum of money demanded by a government. You have to pay taxes on income but not on property or sales.
True
False
24
"Profit" is the amount of money left after all costs have been deducted from the revenue.
False
True
25
A machine is an example of what type of resource?
Human resource
Knowledge and skills needed for production
Man-made resource
Natural resource
26
The model of “homo economicus” is a simplified version of human behavior, it helps economists describe economic actions.
True
False
27
The basic economic problem = resources available to produce goods & services are scarce compared to our limitless wants
True
False
28
What is another word for "scarce"?
used
good
unlimited
limited
29
Financial aids given by the state to support businesses or certain sectors of the economy, are called "subsidies".
True
False
30
Opportunity costs arise when making choices about the use of scarce resources.
False
True
31
Which statement is WRONG? "A public good/service..."
... can be street lighting, the police or environmental protection
... isn't produced by firms because nobody pays for their use
... is provided by the government
... generates the highest profit for firms
32
Which question does not belong to the issues of resource allocation?
How to produce?
For whom do we produce?
Why to produce?
What to produce?
33
Goods and services are the inputs to productive activities, resources are the outputs.
True
False
34
The factors of production are land, labor, enterprise and capital.
True
False
35
A potato is a capital good.
True
False
36
What resource are cotton, coal and wood?
man-made resources
human resources
natural resources
37
Money cannot lose its value.
True
False
38
In the hierarchy of needs, it isn't important in which sequence the different needs are fulfilled.
False
True
39
Resources are the inputs to productive activities and goods and services are the outputs.
True
False
40
In the circular flow model of the economy, households supply the factors of production (land, labour, capital).
True
False
41
What resource are lorry-drivers, engineers or accountants?
human resources
natural resources
man-made resources
42
What is the definition of a "want"?
= a desire that people have, but do not need for survival
= goods and services that people need for survival
43
If you take a credit from a bank to pay for a new house, you are in "debt".
True
False
44
What is the usual result in the "ultimatum game" when played with 100€?
Group B declines all the offers because they want nobody to gain something
Group A offers ~30% because they know group Group B just wants to profit
Group A offers a fair price (~50%) because this will be accepted by group B
45
You like enjoying your free time, so for the exam you study just as much as you need to get anything better than a "5".
maximum principle
minimum principle
46
The motivation of homo economicus is to maximize utility out of self-interest.
True
False
47
Which adjectives are associated with the terms “resources” & “wants” regarding the basic economic problem?
resources = unlimited; wants = limited
resources = scarce; wants = limited
resources = limited; wants = scarce
resources = scarce; wants = unlimited
48
Satisfying a "need" means that it is not necessary for survival, just for pleasure.
False
True
49
One of the self-fulfillment (self-actualization) needs is...
(Choose 1 correct answer)
independence and reaching individual potential
rest and shelter
creativity and morality
intimate relationships
50
Which model describes natural human behaviour more realistically, according to empirical research?
Homo reciprocans
Homo economicus
51
What is the correct definition of the "maximum principle"?
trying to reach a constant output by using a minimum of resources
trying to achieve the highest possible benefit/profit from given resources
52
In the circular flow model of the economy, the financial sectors gives out credits in exchange for interest.
True
False
53
Which of these is the highest in Maslow's hierarchy of needs?
Esteem needs
Safety needs
Basic needs
Social needs
54
In the circular flow model of the economy, the government collects taxes from firms, but not from households.
True
False
55
People who make and sell goods and services are known as "consumers".
False
True
56
An economic system is important because...
... the countries can earn more taxes when they have an economic system.
... it structures the economy of a country and prevents chaos.
57
"Water" counts as what kind of resource?
labour
capital
enterprise
land
58
What need does this sentence belong to? "I want to become the CEO of that brand in order to gain respect by others."
social needs
esteem needs
self-actualization
59
Homo economicus makes decisions based on a cost-benefit analysis (=rationality).
False
True
