sapling 1

In what field do researchers focus on investigating the phenomena of changes in our society?

Economics

What changed between the early twentieth century and present day in our society?

There has been economic growth in our society.

What are tradeoffs?

You have to give up one thing in order to consume another.

The local river has so much pollution that three-eyed fish are forming. The government responds by regulating the amount of chemicals that can be dumped in the river. a)government intervention b)market efficiency c)specialization d)equilibrium

a)government intervention

What does the term ceteris paribus mean? a)holding all else equal (unchanged) b)that the basic concepts of economics do not apply c)that it is an easy to understand statement and does not require complex analysis d)allowing all economic variables to change

a)holding all else equal (unchanged)

Why, if at all, is the ceteris paribus condition important in economic analysis? a)it allows us to analyse how a single change affects an economic environment b)it allows us to analyze how changes in every economic variable at once affects an economic environment c)it is not important

a)it allows us to analyse how a single change affects an economic environment

On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera or a flat screen TV. Buying one means losing out on the ability to purchase the other. a)opportunity cost b)marginal cost c)resource scarcity

a)opportunity cost

An education software company wants to expand the number of economics questions that it offers and is considering hiring another economist. It copares how much adding another worker will improve the product to the additional cost. a)government intervention b)market efficiency c)specialization d)equilibrium

b)marginal decisions

The owner of a snow cone trailer realizes that the demand for snow cones is low during the winter, and thus, closes shop until the temperature warms back up near summertime. a)government intervention b)market efficiency c)specialization d)equilibrium

b)market efficiency

Which of the following describes the equity-efficiency trade-off? a)government intervention can increase efficiency in a market b)the least efficient economic outcome is the fairest outcome c)actions intended to make economic outcomes fairer can cause efficiency to decrease d)there is always a more equitable outcome that is also more efficient

c)actions intended to make economic outcomes fairer can cause efficiency to decrease

economic models are typically based on the principle that people behave rationally. However people do not always behave rationally. Which of the following is NOT a reason why economists still consider their models valid in spite of te irrationality of people? a) for the sake of simplicity, it is easier to create models from generalizations rather than seemingly random irrational behavior. b)people typically behave more rationally over time. c)because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law. d)despite the flaws in te model, the models are still thorough predictors of market behavior.

c)because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.

at a high end restaurant, the restaurant owner has one chef at the meat station, one chef at a vegetable station and one chef, who has an artistic eye, plate the food they are given. The result is increased speed, as more customers get serviced during an evening. a)government intervention b)market efficiency c)specialization d)equilibrium

c)specialization

during the summer, a bumper crop of oranges in Florida causes a surplus in the supply of oranges nationwide. As a result, prices fall to compensate for the surplus and civilians enjoy the fruits of the farmers labor. a)government intervention b)market efficiency c)specialization d)equilibrium

d)equilibrium

Which of the following demonstrates a scenario with no opportunity cost? a)it's friday night and you have no obligations the next day, so you stay up late talking and hanging out with your friends b)the chemistry club is giving out free pizza for lunch to all who come to their table to get it c)Naomi, age 8, is at a bookstore and chooses to buy a book about a young wizard instead of buying a math textbook that she would probably never open d)Chez Moi and Chez Nous, two premiere French restaurants with three Michelin stars, both offer you a full time sous chef job at the same salary. You are ecstatic because you know it is a win-win and choose to work for Chez Nous. e)all of the above

e)all of the above

What is scarcity?

having limited resources

Micro or macro: as a result of a severe recession, the total output or gross domestic product of a nation falls by 4%.

macroeconomics

Micro or macro: increased consumer spending causes the national unemployment rate to fall.

macroeconomics

Micro or macro: increased consumer spending causes the rate of inflation to raise.

macroeconomics

Micro or macro: Robotic technology reduces the demand for auto workers.

microeconomics

Micro or macro: a tax on tires increases the price of tires paid by car owners.

microeconomics

Micro or macro: optimism about future car sales leads General Motors to hire more auto workers.

microeconomics

positive or normative economics: social welfare spending in Sweden occupies too large a portion of the national budget

normative economics

positive or normative economics: the richest 1% of Americans should pay more taxes than the rest of the 99%

normative economics

positive or normative economics: a decrease in the supply of coconut will increase the price of German chocolate cake, a good which requires coconut shavings as a key ingredient

positive economics

positive or normative economics: the higher the minimum wage, the higher the price of goods and services is likely to be

positive economics