1. Which of the following statements is true about scarcity?
2. By definition, economics is the study of
3. The term ________ in economics refers to a group of buyers and sellers of a product and thenarrangement by which they come together to trade.
4. Economists reason that the optimal decision is to continue any activity up to the point where the
5. The three fundamental questions that any economy must address are:
6. The idea that because of scarcity, producing more of one good or service means producing lessnnof another good or service refers to the economic concept of
7. The highest valued alternative that must be given up to engage in an activity is the definition of
8. Arlene quits her $125,000 a year job to take care of her ailing parents. What is the opportunity cost of her decision?
9. Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy?
10. The decision about what goods and services will be produced made in a market economy is made by
11. How are the fundamental economic questions answered in a market economy?
12. Which of the following is a positive economic statement?
13. Which of the following is a normative economic statement?
14. Microeconomics is the study of
15. Macroeconomics is the study of
16. Which of the following statements is true about profit?
17. Which of the following is an example of an activity undertaken by an entrepreneur?
18. Which is NOT a factor of production:
19 Positive analysis is concerned with what ought to be , while normative analysis is concerned with what is .
20 The points outside the production possibilities frontier are
21. The production possibilities frontier shows the ________ combinations of two products that may be produced in a particular time period with available resources.
22. The production possibilities frontier model shows that
23. In a production possibilities frontier model, a point ________ the frontier is productively inefficient.
24. An inward shift of a nation s production possibilities frontier can occur due to
25. Without an increase in the supplies of factors of production, how can a nation achieve economic growth?
26. Which of the following would shift a nation s production possibilities frontier outward?
27. The Great Depression of the 1930s with a large number of workers and factories unemployed would be represented in a production possibilities frontier graph by
28. An organization of producers that limits the amount of a good produced is known as
29. The opportunity cost of taking a semester long economics class is
30. You have an absolute advantage whenever you
31. Comparative advantage means the ability to produce a good or service
32. Which of the following is not a factor of production?
33. “An Inquiry into the Nature and Causes of the Wealth of Nations” published in 1776 was written by
34. Adam Smith s behavioral assumption about humans was that people
35. Adam Smith s invisible hand refers to
36. In economics, the term ________ means “additional” or “extra”.
37. Marginal analysis involves undertaking an activity
38. Economists assume that individuals
39. How are the fundamental economic decisions determined in North Korea?
40, The government makes all economic decisions in a mixed economy.
41. In economics, choices must be made because we live in a world of
42. The natural resources used in production are made available in the
43. When you purchase a new pair of jeans you do so in the
44. The ________ demonstrates the roles played by households and firms in the market system.
45. Households ________ final goods and services in the ________ market.
46. In the circular flow model, producers
47. Which of the following statements about a simple circular flow model is false?
48. All of the following are critical functions of the government in facilitating the operation of a market economy except
49. Entrepreneurs bring together the factors of production to produce goods and services.
50. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue.