Econ ch 1 packet practice questions
economics can be described as the study of how people use _______ resources to satisfy __________ wants
limited, unlimited
the branch of economics which studies the behavior of entire economics and policies that effect the economy as a whole is called
macroeconomics
________ involves undertaking an activity until its marginal benefits equals marginal costs
marginal analysis
the branch of economics which studies how households and firms make choices, interact in markets and how the government attempts to influence their choices is called
microeconomics
economics is the study of how
people make choices
in economics, items that are used to produce good and services are known as
resources
the study of economics arises due to
scarcity
human capital refers to
the accumulated skills and training workers have
which of the following statements is a positive economic statement?
the president's budget included an increase in unemployment insurance payments
economic analysis is a tool that
aids decision making
the way that a society uses or allocates resources to satisfy human wants is called
an economic system
if the marginal cost of producing a television is constant at $200, then a firm should produce this item
as long as the marginal benefit it receives is just equal to or greater than $200
economics is the study of the _______ people make to attain their goals given their _______ resources
choices, scarce
central planning is a key characteristic of which economy system?
command and control
which of the following statements about economic resources is false
economic resources include financial capital and money
the basic economic problem of scarcity
has always existed and will continue to exist
which of the following is a microeconomic question?
how will apple decide on a selling price for the iPad?
which of the following is a macroeconomics question?
what determines the minimum wage?
"by 2015, no individual in the US should earn less than $20,000 a year" is an example of
a normative statement
