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| Economics is best defined as |
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Definition
| the study and allocation of scarce resources |
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| The benefits of the highest valued forgone alternative |
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| Which of the following is the best example of ceteris paribus? |
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| Holding the price of substitute goods constant while allowing price and Qd to change |
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| Which of the following best frscribes microeconomics |
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Definition
| It ecamines choices that individuals, businesses, governments, and entire societies face because of scarcity |
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| Which of the following is a normative statement? |
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| An increase in college tuition is not fair to students |
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| Money spent by business on capital goods |
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| According to the personal distribution of income, in the United States which earns most of the income? |
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Definition
| Neither cpital labor or entreprenuers; none of the above. |
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Term
| A negative relationship exists between two variables if |
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Definition
| a decreaes in one variable is associated with an increase in the other variable |
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| _________ is paid for the use of land; _________ paid for the service of labor; and ____________ paid for the use of capital. |
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Definition
| rent is, wages are, and interest is |
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Term
| In the circular flows model, the factors of production flow in the |
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Definition
| same direction as do the rent, wages, interest and profits |
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| What is the federal governments largest source of revenue |
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Definition
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| State governments collect the most amount of money from |
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| The US population is roughly ___ percent of the world population |
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Term
| The negative slope of the production possibiliies frontier represents the ideas that |
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Definition
1. free lunches are possible *
2. of tradeoffs, that in order to produce more of one good, the nation must produce less of another |
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Term
| The production possibilities frontier is the boundary between the |
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Definition
| attainable and unattainable combinations of goods and services |
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Term
| production efficiency is represented by _____ a ppf |
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Definition
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| as an economy moves down along a straight line production possibilities frontier, what happens to the opportunity cost of producing the good on the horizontal axis? |
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| its ppc does not shift; instead the production point moves from inside the ppc to be closer to the ppc |
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Term
| The law of demand states that |
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Definition
| as the price of a good rises, quantity demanded falls; ceteris paribus |
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Term
| An increase in the number of movie theaters results in |
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Definition
| a leftward shift in the supply curve of movie theaters |
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Term
If supply and demand both decrease, Pe _____ and
Qe ______ . |
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Definition
| Rises, miht change but the change is ambiguous. |
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Term
| Hot dogs and Hamburgers are substitute goods. If the price of hot do rises, then |
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Definition
| the quantity demanded for hamburgers will increase |
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Term
| If both producers and consumers believe that a products price will fall in the future then at the present the equillibrium price |
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Definition
| might rise, fall, or not change but the change cannot be predicted |
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Term
| People consume more hot dogs as the temperature falls, so as cold weather approaches |
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Definition
| people move farther along their demand curve |
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Term
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Definition
| create excess demand, put pressure on the price to rise, and are below Pe |
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Term
| If income falls but technology improves |
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Definition
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Term
| GNP includes the goods and services produced |
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Definition
| within a country's boarders by citizens and non-citizens |
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Term
| Economists define consumption to be include purchases of |
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Definition
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| net exports of goods and services is equal to the value of |
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Definition
| domestic consumption - value of imports |
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Term
| The following are all intermediate goods except |
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Definition
TVs used by ford motor company in their cars
BS
colored TVs bought by you |
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Term
| The purchase of financial assets, such as stocks and bonds, is not included in GDP because |
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Definition
| brokerage firms dont want them to be included |
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Term
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Term
| The difference between nominal and real is |
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| nominal is measured in current dollars and real is measured in base year dollars |
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Term
| All other things being equal means |
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Definition
| means all other things being constant |
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Definition
| is anything you give up to get something else |
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| A change in price changes Qd or Qs |
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Definition
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| A change in demand or supply is represented by a shift in either the demand or supply curve |
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Definition
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| The economic benefit of anything |
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| is measured by a buyers willingness to pay for it |
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Definition
| if they consider the benefits and the costs of something before doing it |
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Term
| The margin (marginal analysis) is best illustrated by |
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Definition
| deciding whether to sleep for one more hour or study for one more hour |
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Term
| Why does a nation experience increasing opportunity cost? |
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Definition
| resources are not equally productive in producing different kinds of goods and services |
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Term
| If a society moves form a period of time with significany unemployment to a time with full employment, its production possibilities curve will |
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Definition
| the society moves from a point inside the frontier to a point on the frontier |
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