ECON 2301: Chapter 1 SB

Which of the following are ways of expressing the meaning of ceteris paribus?

- Assuming things are equal - Assuming factors other than those being considered in a particular analysis do not change

Which of the following are issues most explored in microeconomics?

- measuring the price of specific goods - measuring total revenues of a firm - the expenditures of a government entity

Which of the following resources would be considered to be land by an economist?

- water - oil and mineral deposits - forests - arable land

Suppose you are given a $100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will involve which of the following?

A comparison of marginal benefits and marginal costs for each good considered

Which of the following describes a budget line?

A curve showing various combinations of two products a consumer can purchase with a specific amount of income.

If economists examine the relationship between the price of a good and sales of that good while ignoring other related factors, or assuming those other factors are equal, they are using which of the following?

Ceteris paribus

True or false: Everyone except for the super wealthy has a finite, or limited, amount of income.

False

True or false: Positive economics encourages value judgments.

False

______ comes in the form of wages, interest, rent, profit, and even from government programs.

Income

Which discipline studies the economy as a whole or its basic subdivisions or aggregates?

Macroeconomics

__________ is the discipline that examines the performance and behavior of an economy as a whole.

Macroeconomics

Which discipline studies the decision-making process of customers, workers, households, and business firms on an individual basis rather than as aggregates?

Microeconomics

______ economic resources means limited goods and services.

Scarce

A production possibilities curve with an increasing slope is the result of which of the following?

The law of increasing opportunity costs

Which best defines utility?

The satisfaction or pleasure obtained from consuming a good or service

Positive economics ______ value judgments, tries to establish ______ statements about economic behavior, and deals with ______ economic events.

avoids; scientific; actual

A consumer's ______ line or constraint shows various combinations of two products that can be purchased with a specific amount of income.

budget

All natural resources, human resources, and manufactured goods that go into the production of goods and services are considered as society's scarce _________ resources.

economic

The _________ problem refers to the need to make choices because economic wants exceed economic means.

economizing

Which of the following is a result of having scarce economic resources for the production of goods and services?

fewer options that require choices

From an economic standpoint, ______ includes all natural resources used in the production process.

land

A production possibilities curve (PPC) illustrates the attainable combination ______,

of two goods that can be produced given a specific set of resources

Which of the following illustrates the attainable combination of two goods that can be produced given a specific set of resources?

production possibilities curve

A ______ lists the different combinations of two products that can be produced with a specific set of resources, assuming full employment.

production possibilities table

When an economy produces a good such that the marginal benefit equals the marginal cost, this indicates that ______.

resources are being allocated efficiently

Land and mineral resources, transportation and communication facilities, factories and farm buildings, equipment, tools and machinery are all examples of _______.

scarce economic resources

Your next-door neighbors want to go on a European vacation but cannot afford it, so they decide to visit a local amusement park instead. This is an example of ______.

the economizing problem

The outward bowing shape of the production possibilities curve is due to ______.

the law of increasing opportunity costs

The optimal allocation of resources occurs when ______.

the marginal benefit of the good equals the marginal cost

People desire goods and services that provide maximum utility. In fact, our desires or wants are ______.

unlimited

The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as

utility

For better or worse, people have ______.

virtually unlimited wants

Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service ______.

when the marginal benefit is greater than the marginal cost