What does positive economics do?

Makes predictions about what will happen in specific events, Describes and explains economic phenomena

adjusts to consumer demands over time

the value of goods and services produced in a country over time

A combination of goods and services outside the PPF illustrates:

not possible/unachievable production

Which of the following examples best demonstrates opportunity cost?

Your sister chooses to read a book instead of watching TV

Microeconomics focuses on...

how individual consumers and firms make decisions

A normative statement in economics...

is dependent on value judgements

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Introductory Concepts - Economics Unit 1 AoS1

18 termsStudBud Administration249 plays

VCE Unit 1 Economics, Area of Study 1, Outcome 1, Thinking like an economist

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Questions 18

Answers

1
What are tools, equipment, and factories used in the production of goods and services?
Consumer goods
Durable goods
Entrepreneurship
Capital goods
2
Which of the following is NOT a basic economic question?
How to produce?
For whom to produce for?
What to produce?
When to produce?
3
What does positive economics do?
Makes predictions about what will happen in specific events
Describes and explains economic phenomena
Doesn't identify the cause-and-effect relationships
Talks about how stocks go up and down in the stock exchange
4
A market economy...
fixes incomes on consumers
controls prices and wages
adjusts to consumer demands over time
limits the profit of large corporations
5
The situation of limited resources and unlimited needs and wants creates
marginal benefit
choices
scarcity
utility
6
Capitalism is most closely associated with what economic system?
Market
Command
Traditional
Socialism
7
Which of the following examples would push the PPF out?
Increase in capital
Increase in land
Increase in labor
Any of the above
8
GDP is...
a country's unemployment rate over a period of time
the value of goods and services produced in a country over time
taxes payed by citizens over a specific period of time
how much a single business produces in a period of time
9
Risk-taking individuals in search of profits
Land
Capital
Entrepreneurship
Labor
10
Why do people make trade-offs?
To save
Unlimited resources
Limited resources
Too expensive
11
A combination of goods and services outside the PPF illustrates:
underproduction
not possible/unachievable production
full production
maximum production
12
What do economic systems do?
Answer the three basic economic questions
Allocate resources
Organise production
All of the above
13
Any point on the production possibility frontier illustrates
Unachievable production
Full/maximum production
Under production
14
Movement along the production possibility frontier illustrates which economic concept?
Wants and needs
Relative scarcity
Opportunity cost
Living standards
15
Which of the following examples best demonstrates opportunity cost?
Your father listens to the radio as he cooks dinner
Your teacher assigns an essay for homework
You forget to bring a pencil to class
Your sister chooses to read a book instead of watching TV
16
Macroeconomics is not concerned with:
National income
National production
Prices of bananas
The national unemployment rate
17
Microeconomics focuses on...
an overall economy on both a national and international level
none of the above
a country, a continent, or even the whole world
how individual consumers and firms make decisions
18
A normative statement in economics...
is based on things that are normal
is dependent on value judgements
is open-ended
is based on facts

Introductory Concepts - Economics Unit 1 AoS1 Flashcards | StudBud