Lesson 1

The balance of trade is the difference between the monetary cost of the ______________ that a nation exports and the monetary cost of what it imports. - Goods - Services - A and b - None of the above

A and b

"Allocation" is concerned with how we choose to use our scarce resources on __________. - An unlimited number of projects - Only Normative economic projects - Only Positive economic projects - A limited variety of different projects

A limited variety of different projects

Over a reasonable period of time __________ must choose to balance its trade within the global markets in order to prosper. - Each business - Every person - Each industry - A nation

A nation

The "marginal utility" of choosing to go to a particular concert is the ____________ benefit (satisfaction or pleasure) that is gained. - Total - Additional - None of the above - All of the above

Additional

The goal of "Growth" is to increase the "real" (__________) value of GDP in an economy. - Services only - Products only - Investments only - Adjusted to not include inflation

Adjusted to not include inflation

There is much __________ among economists about the "principles" (generalizations) about how an economy actually "works". - Disagreement - Angst - Agreement - Gnashing of teeth

Agreement

Economists seek to optimize the allocation of scarce resources toward the maximum satisfaction possible for __________. - Individuals - Communities - Entire societies - All the above

All the above

The goal of Social Balance and Equity (Fairness) requires appropriate responsibility to be taken on by all people in the economy including __________. - Consumers - Business people - Government officials - All the above

All the above

Stability is the goal of economics seeking to __________ so that an economy does not experience high inflation. - Allocate resources - Avoid too much endorphin - Avoid too little adrenaline - Have the right amount of oxytocin

Allocate resources

A Fallacy of Composition exists when we conclude that something that is good for ___________ is also good for the entire society. - A female - A male - An individual - None of the above

An individual

Over a reasonable period of time a nation must choose to __________ within the global markets in order to prosper. - Run a trade surplus - Run a trade deficit - Balance its trade - None of the above

Balance its trade

A __________ taken on by all people in each sector of the economy results in fairness of opportunity (equity) for all people. - Big dose of oxytocin - Big dose of adrenaline - Balance of responsibilities - None of the above

Balance of responsibilities

The _____________ is the difference between the monetary cost of the goods and services that a nation exports and the monetary cost of what it imports. - Government spending deficit - National credit card balance - Balance of trade - All the above

Balance of trade

Ecological balance is the goal that assumes the global economy can achieve __________ economic conditions while maintaining a sustainable, living, planet. - Maximum - Only minimum - Balanced - All the above

Balanced

Microeconomics analyzes how we choose to use our resources on a smaller scale and includes measures of performance such as - Unemployment - Business costs - Consumer utility patterns - Both b. and c.

Both b. and c.

Macroeconomics analyzes how we choose to use our resources on an aggregate (national) level and includes measures of performance such as __________ . - Both b. and c. below - Inflation - Unemployment - Consumer utility patterns

Both b. and c. below

In the Resource (or Factor) Markets of the Circular Flow model, Households provide __________ to the Business sector in exchange for Interest. - Labor - Land (natural resources) - Capital (tools) - Entrepreneurship

Capital (tools)

Freedom for citizens is a goal of economics within _____________. - Fascism - Socialism - Capitalism - Totalitarianism

Capitalism

In order to evaluate the ________ that must be made toward providing value for people, it is assumed that all parties to the process are rational. - Soup - Cheese burgers - Choices - Pizza

Choices

The term "allocation" means how we __________ to spread our limited resources over some variety of different projects. - Choose - Are always forced - Never are allowed - All of the above

Choose

Growth and Full employment are __________ economic goals. - Conflicting - Supplementary - Complementary - Always equally important

Complementary

Growth and Stability are __________ economic goals. - Conflicting - Supplementary - Complementary - Always equally important

Conflicting

In the Product Markets of the Circular Flow model, Households provide __________ to the Business sector in exchange for Goods and Services. - Labor - Land (natural resources) - Capital (tools) - Consumption Spending (or Revenues)

Consumption Spending (or Revenues)

The freedom to make purchases as desired and to work and live independent of extensive controls by the government is a basic ____________ in a free market society. - Religious ritual - Spiritual trip - Flaw - Cultural value

Cultural value

The amount of emphasis placed on each "Macroeconomic Goal" is determined by the ______________ in a society. - Amount of music - Number of math majors - Amount of psycho babble - Cultural values

Cultural values

There is much _____________ among economists about what goals should be emphasized and how government policy and choices should be made. - Disagreement - Angst - Agreement - Gnashing of teeth

Disagreement

__________ is the goal that assumes the global economy can achieve balanced economic conditions while maintaining a sustainable, living, planet. - Ecological balance - Stability - Social balance - Freedom

Ecological balance

_____________ are "social scientists"(concerned with human behavior and cultural values) who seek to optimize the allocation of scarce resources toward the maximum satisfaction possible for individuals, communities, and entire societies. - Entrepreneurs - Capitalists - Socialists - Economists

Economists

A real cost of choosing to attend a concert is not only the out-of-pocket $ $ $ cost, but also the "opportunity cost" (for example: __________ ). Every activity we undertake requires us to not pursue other opportunities. - Either b. or c below ... or possibly another "opportunity" that is not listed - Extra sleep - Lost wages - None of the above

Either b. or c below ... or possibly another "opportunity" that is not listed

In the Resource (or Factor) Markets of the Circular Flow model, Households provide __________ to the Business sector in exchange for Profits. - Labor - Land (natural resources) - Capital (tools) - Entrepreneurship

Entrepreneurship

A balance of responsibilities taken on by all people in each sector of the economy results in __________ (equity) for all people. - Fairness of results - Fairness of opportunity - A full shot of adrenaline - A full shot of oxytocin

Fairness of opportunity

A ________________ exists when we conclude that something that is good for an individual is also good for the entire society. - Rational Analysis - Marginal Analysis - Ceteris Paribus - Fallacy of Composition

Fallacy of Composition

If you, as an individual, conclude that paying no taxes is a good thing for you, then it must be a good thing for the entire society. - True - False

False

If you, as an individual, conclude that pouring your used motor oil into the creek is a good thing for you ( saves time !), then it must be a good thing for the entire society. - True - False

False

In the Product Markets of the Circular Flow model, Households provide Consumption Spending (or Revenues) to the Business sector in exchange for _____________ . - Wages - Rent - Profits - Goods and Services

Goods and Services

Policy Economics is the application of the Principles of Economics to decision making (choices) by the various arms of the __________. - Octopus - Orangutan - Government sector - Household sector

Government sector

The amount of goods and services produced is measured by __________. - Instant Gratification Index (IGI) - Gross Domestic Product (GDP) - Adrenaline Maximization Product (AMP) - Endorphin Utility Index (EUI)

Gross Domestic Product (GDP)

Stability is the goal of economics seeking to allocate resources so that an economy does not experience __________. - Too much endorphin - Too little adrenaline - The wrong amount of oxytocin - High inflation

High inflation

In the Product Markets of the Circular Flow model, Businesses provide Goods and Services to the ____________ sector in exchange for Consumption Spending (or Revenues). - Government - Financial - Foreign Trade - Household

Household

In the Resource (or Factor) Markets of the Circular Flow model, Households provide __________ to the Business sector in exchange for Wages. - Labor - Land (natural resources) - Capital (tools) - Entrepreneurship

Labor

In the Resource (or Factor) Markets of the Circular Flow model, Households provide __________ to the Business sector in exchange for Rent. - Labor - Land (natural resources) - Capital (tools) - Entrepreneurship

Land (natural resources)

"Allocation" is concerned with how we choose to use our __________ resources on some variety of different projects. - Unlimited - Limited - Natural - Human

Limited

__________ analyzes how we choose to use our resources on an aggregate (national)level and includes measures of performance such as inflation, unemployment, and federal government expenditures. - Normative economics - Microeconomics - Macroeconomics - Positive economics

Macroeconomics

__________ analyzes how we choose to use our resources on a smaller scale and includes measures of performance such as consumer utility patterns, business profits, and business costs. - Normative economics - Microeconomics - Macroeconomics - Positive economics

Microeconomics

The balance of trade is the difference between the __________ of the goods and services that a nation exports and the __________ of what it imports. - Marginal cost - Marginal benefit - Opportunity cost - Monetary cost

Monetary cost

The statement, "The government should choose a policy to create a lower rate of inflation", is a __________ statement. - Microeconomic - Positive economic - Global economic - Normative economic

Normative economic

The description of an economy by stating "opinions" is called __________ . - Macroeconomics - Positive economics - Microeconomics - Normative economics

Normative economics

A real cost of choosing to attend a concert is not only the out-of-pocket $ $ $ cost, but also the "opportunity cost" (lost wages or maybe extra sleep). Every activity we undertake requires us to ________ pursue other opportunities. - Not - Also - None of the above - All of the above

Not

A real cost of choosing to attend a concert is not only the out-of-pocket $ $ $ cost, but also the ________________ (lost wages or maybe extra sleep). Every activity we undertake requires us to not pursue other opportunities. - Fantasy cost - Un-real - Book keeping - Opportunity

Opportunity

Although most people want maximum attainment of every economic goal, there is the operating reality of ________________________ that causes us to give up some of one thing if we want more of another. - Opportunity cost - Ceteris paribus - Marginal utility - None of the above

Opportunity cost

Economists are social scientists who seek to __________ the allocation of scarce resources with a goal of bringing at least "basic satisfaction" to all members of a society. - Optimize , that is "balance" - Minimize, that is "hoard them for later" - Sanitize, that is, "make them pollution free" - Nationalize, that is "put them under government control"

Optimize , that is "balance"

__________ a nation must choose to balance its trade within the global markets in order to prosper. - Over a reasonable period of time - Every year - Once each month - There is never a time when

Over a reasonable period of time

_________ Economics is the application of the Principles of Economics to decision making. (choices) by the various arms of the government. - Positive - Normative - Macro - Policy

Policy

The statement, "According to a government report, the unemployment rate is at 3%", is a __________ statement. - Microeconomic - Positive economic - Global economic - Normative economic

Positive economic

The description of an economy by stating "facts" is called __________________ . - Macroeconomics - Positive economics - Microeconomics - Normative economics

Positive economics

__________ is the goal of economics seeking to allocate resources so that an economy does not experience high inflation. - Ecological balance - Social balance - Full Employment - Price Stability

Price Stability

The __________ of Economics are the generally accepted theories about resource allocation. - Rules - Principles - SWAG's - Systems

Principles

In the __________ of the Circular Flow model, Households provide Consumption Spending (or Revenues) to the Business sector in exchange for Goods and Services. - Resource Markets - Financial Markets - Government Markets - Product Markets

Product Markets

Being __________ means being able to clearly understand what one needs and being able to clearly understand the cost of gaining the fulfillment of each need. - Good at karate - Good at pole vaulting - Good at ethnic dancing - Rational

Rational

A __________ cost of choosing to attend a concert is not only the out-of-pocket $ $ $ cost, but also the "opportunity cost" (lost wages or maybe extra sleep). Every activity we undertake requires us to not pursue other opportunities. - Un-real - Book keeping - Real - Fantasy

Real

The goal of "Growth" is to increase the __________ (adjusted to not include inflation) value of GDP in an economy. - Nominal - Fantasy - Real - FIFO

Real

Being "rational" means being able to clearly understand a) what one needs and b) the __________ in gaining the fulfillment of each need. - Reality of the cost - Absence of any risk - Absence of any uncertainty - Lack of any benefit

Reality of the cost

The Principles of Economics are the generally accepted theories about __________. - Uncertainty and probability - Risk management - Resource allocation - Return on investment

Resource allocation

The goal of Social Balance and Equity requires appropriate __________ to be taken on by all people in the economy including consumers, business people and government officials. - Responsibility - Freedom - Cheese burgers - Oxytocin (that "bonding" hormone)

Responsibility

Economists are ____________ (concerned with human behavior and cultural values) who seek to optimize the allocation of scarce resources toward the maximum satisfaction possible for individuals, communities, and entire societies. - Entrepreneurs - Capitalists - Unionized labor - Social scientists

Social scientists

The freedom to make purchases as desired and to work and live independent of extensive controls by __________ is a basic cultural value in a free market society. - Your mother-in-law - Your father - The government - Your spouse

The government

Part of the "marginal cost" of choosing to go to a particular concert could be the additional __________ that is produced. - Utility - Peanut butter - Traffic - Pleasure

Traffic

The "marginal _________" of going to a particular concert is the additional benefit (satisfaction or pleasure) that is gained. - Cost - Utility - Peanut butter - Road rage

Utility

Ecological balance is the goal that assumes the global economy can achieve balanced economic conditions __________. - Only if pollution is kept at zero - Only if inflation is maximized - Only if unemployment is minimized - While maintaining a sustainable, living planet

While maintaining a sustainable, living planet

Over a reasonable period of time a nation must choose to balance its trade ____________ in order to prosper. - Within its own borders - Within the global markets - With each and every person - With each and every business

Within the global markets