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Economics Introduction - Chapters 1 and 2 Flashcards | StudBud
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Economics Introduction - Chapters 1 and 2
Economics Introduction - Chapters 1 and 2
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1
Sam can go to a basketball game or a hockey match. If Sam goes to the hockey match, what it the opportunity cost?
Eating pizza with friends
Watching a Season of The Office
Going to the Basketball Game
$50 for the ticket
2
The opportunity cost of playing the guitar and not doing homework is:
Better overall skills on the guitar
Better Grades in school
Doing homework
Sleeping
3
Because we face scarcity, every choice involves
giving up something for nothing.
money
the question "what.
an opportunity cost
4
An incentive
is the opposite of a tradeoff
could be either a reward or a penalty
could be a penalty but could not be a reward
could be a reward but could not be a penalty
5
If I want to pay off my oven in a year and it will bring $500 more a month /Marginal analysis will show it should cost
Less than $6000
less than $500
It is a bad decision all around according to Marginal Analysis
Less than $4000
6
Making a choice at the margin means ________.
waiting until the last minute to make a choice
deciding not to do something
deciding to do a little bit more or a little bit less of an activity
letting someone else choose for you
7
Leo catches 5 fish in 8 hours & takes 2 hours to cook- Jen catches 10 fish in 6 hours & 1 hour to cook - best analysis?
Leo has a comparative advantage with both fish and cooking
Leo has a comparative advantage with cooking but not fish
Jen has a absolute advantage with both cooking and fish
Jen has a comparative advantage with both fish and cooking
8
Economics is best defined as the study of how people, businesses, governments, and societies
attain wealth
make choices to cope with scarcity.
Add money to bank accounts
Make decisions on government spending
9
An economy is operating at full employment, & then workers in the bread industry are laid off. This change is portrayed
A movement from B to E
A movement from A to B
A Movement from C to F
A movement from B to C
10
U paid $100 for a Kayne Ticket - a friend offers U a free tic for Lady Gaga & U resell the tic for $80, Sunk Cost = ?
$120
$100
$180
$20
11
What motivated the producers of those individual products to make them and offer them for sale?
The resources available to produce the product
The spending decisions of households
The income earned by households
The workers' technical skills
12
The lesson of ? is to forget about that which is gone and instead to focus on the marginal cost and future opportunities
marginal analysis
sunk cost
opportunity cost
budget constraint
13
Point G on the Graph represents
Maximum employment
The best possible combination of all resources.
Less bread than wine being produced
Resources not being adequately used
14
In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of
Both businesses and the government selling factors of production
buyers and sellers
all consumers
producers and government planning committees
15
The circular flow diagram of economic activity is a model of the:
flow of goods, services, and payments between households and firms
influence of government on business behavior
role of unions and government in the economy
interaction among taxes, prices, and profits
16
Factors of production include all of the following EXCEPT ________.
labor
transportation
capitol
Entrepreneurship
17
Specialization
can lead to an increase in overall production
is always the result of an inefficient use of resources
leads to greater self-sufficiency
always requires more training and schooling
18
After eating eight chocolate chip cookies, you turn down the ninth cookie. Your refusal indicates that
The marginal utility for chocolate chip cookies is negative
The marginal utility is positive for all the cookies
The marginal utility is positive for the 8th cookie & negative for the 9th
The total utility for eating chocolate chip cookies is negative
19
Point E on the Chart represents
inefficient use of resources
More wine being produced than Bread
A perfect combination resources used
an unattainable allocation of resources
20
The opportunity cost of attending university is likely to include all except which of the following
the time you could spend with friends
the cost of haircuts received during the school term
the income you forgo in order to attend classes
the cost of required textbooks
21
A government chooses to use resources to build a dam, now there isn't enough for a highway. This represents the concept
opportunity cost
sunk cost fallacy
macroeconomics
microeconomics
