Introduction to Economics

Question 1

What is the Other-Things-Equal Assumption?

Accepted Answer

ceteris paribus, factors other than those being considered are held constant

Question 2

What does this graph show?

Accepted Answer

Production possibilities frontier for an entire economy

Question 3

Generalizations

Accepted Answer

tendencies of typical consumers, workers, businesses, etc.

Question 4

Which point is unattainable without a change to economic resources or technology?

Accepted Answer

Y

Question 5

Which describes the coordination problem?

Accepted Answer

Difficult to anticipate decisions of resource suppliers, Shortages in one industry affect others, Difficult to determine possible decisions of consumers, Lack of success indicator leads to shortages or excess

Question 6

Government-appointed leaders who control economic activity, set quotas, and monitor markets

Accepted Answer

Central Planning Board

Question 7

When people, businesses, regions, or nations produce one or few goods/services

Accepted Answer

Specialization

Question 8

The phone rings and then the lights go out. The phone ringing must cause the lights to go out.

Accepted Answer

Post Hoc Fallacy

Question 9

Which statement below shows positive economics?

Accepted Answer

The economy is growing at 2%.

Question 10

What is the law of increasing opportunity cost?

Accepted Answer

Increased production of a good requires more inputs., Explains the shape of the production possibilities frontier., Not all resources are created equal.

Question 11

Making decisions based on the benefits and costs of the action

Accepted Answer

Marginal Analysis

Question 12

What describes a command system?

Accepted Answer

Government determines what, how, and for whom to produce

Question 13

A situation where unlimited wants exceed limited resources available to fulfill those wants.

Accepted Answer

Scarcity

Question 14

What is the sacrifice of not producing, consuming, or doing the next best alternative?

Accepted Answer

Opportunity Cost

Question 15

Which statement below shows normative economics?

Accepted Answer

The economy is growing at a shameful 2% rate due to taxes., A 2% economic growth is the best rate of growth.

Question 16

What is the "place" in which households sell and firms buy factors of production?

Accepted Answer

Resource Market

Question 17

This shows the flow of money, goods, services, and factors of production in a market system.

Accepted Answer

Circular Flow Model

Question 18

What does an economy do?

Accepted Answer

It makes the best choices under conditions of scarcity., It produces goods and services., It creates scarcity when none exists.

Question 19

This is the study of how individuals and societies make the best use of scarce resources.

Accepted Answer

Economics

Question 20

What is the incentive problem?

Accepted Answer

Individuals are not motivated to fix shortages, Individuals are not motivated to fix surplus

Question 21

What is the place where households purchase the goods and services firms produce?

Accepted Answer

Product market

Question 22

A connection appears to exist between drowning in a pool and Nicholas Cage movies.

Accepted Answer

Correlation

Question 23

What would cause a shift outward (economic growth)?

Accepted Answer

Technological advance which improves production efficiency?, An increase in labor supply, Access to more land with resources needed for production., An increase in capital goods

Question 24

These are tangible products used to satisfy wants and needs.

Accepted Answer

Goods

Question 25

What is utility?

Accepted Answer

satisfaction gained from consumption of goods or services

Question 26

What is a quota?

Accepted Answer

Limit placed on the quantities produced or consumed, Government restriction on production or consumption

Question 27

Which point shows the possible impact of unemployment?

Accepted Answer

X

Question 28

The skill creating a new business, product, or production technique

Accepted Answer

Entrepreneurship

Question 29

A common demand by two or more buyers/sellers upon a limited supply of a resource/good/service.

Accepted Answer

Competition

Question 30

The resources owned by individuals and businesses: land, capital, and intellectual rights.

Accepted Answer

Private Property

Question 31

Which of the following best describes services?

Accepted Answer

actions or activities performed for another person/business

Question 32

I see a blue dog and believe all dogs are blue.

Accepted Answer

Fallacy of Composition

Question 33

Which point shows the possible impact of unemployment?

Accepted Answer

X

Introduction to Economics

Questions 33

Introduction to Economics

Questions 33