Chapter 1
value of the slope
-1/5
if y=800-4x what is the slope
-4
which graph shows a negative and increasing relationship between x and y
C
Correct Statement
Entrepreneurs make business decisions
Which of the following illustrates scarcity
Megan wants to buy a CD that costs $25 but has only $10 to spend
Who faces a tradeoff
Pam, Pat, and Pru face a tradeoff
Which of the following is an example of entrepreneurship
Sam walton creating walmart
Which items involve a microeconomic issue and which involve a macro issue? a. us is borrowing less from China, more from everybody else b. the us inflation expectations at highest level since 2015 c. is hula now a better value that netflix d. manufacturing production in the us rises for the 6th straight month
Statement A is macro Statement B is macro Statement C is micro Statement D is macro
Benefit
The benefit of something is the gain or pleasure that it brings.
Microeconomics
The study of the choices that individuals and businesses make and the way these choices interact and are influenced by governments.
Rational Choice
a choice that compares costs and benefits and achieves the greatest benefit over cost for the person making the choice
Tradeoff
a constraint that involves giving up one thing to get something else
Preferences
a description of a person's likes and dislikes and the intensity of those feelings
Incentive
a reward that encourages an action or a penalty that discourages one
Economics is _____
a social science
A choice on the margin is a choice that is made by comparing relevant __ systematically and ___ marginal cost is ___ marginal benefit is ---
alternatives; incrementally; opportunity cost; increase;benefit;increase
Which of the following headlines does not deal with scarcity?
apply early for your passport
Learning Aid question answers in order
ask the instructor, teach me, help me solve this, grapher
what move describes the impact of an increase in income on consumption
b to c
Rational choice is a choice that uses the available resources to ____ of the person making the choice
best achieve the objective
in what type of economy does the government decide how most economic resources will be allocated
centrally planned economy
In the previous graph, the solid line can be expressed algebraically as Y=a+bX. What causes the line to shift from solid to dashed
change in value of A
According to the economic way of thinking, people
compare costs and benefits and make a choice to achieve the greatest benefit over the cost for the person making the choice
Which of the following is not a possible opportunity cost of attending college
cost of housing
the most important skills needed for an economics job include
critical thinking and math
understanding economics can help policy makers devise strategies to do all of the following except
eliminate climate change
one of the first steps in deciding whether to complete your edu is to
evaluate marginal cost and marginal benefit
You ____ and the opportunity cost of your evening watching television was ___
faced a tradeoff between a higher test score and an evening watching tv and the 5 percent fall in your grade
What is the opportunity cost of the trip to hawaii
for pam and pat its a cruise, for pru its skiing
Cancer scientists hail breakthrough treatment involves a ___ question
for whom, what
land is the ____ that we use to produce goods and services
gifts of nature
Land
gifts of nature: land, oil, water, air
a tradeoff is ___
giving up one thing to get another
4 issues for social interest
globalization, climate change, information age monopolies, financial instability
____ is an example of ____
grand canyon, land
in the previous graph the value of the slope is
greater between g and h than between i and j
Opportunity Cost
highest value alternative that we must give up to get something we want
Stores uses computers to keep their inventory records involves a ____ question
how
Macro can be used to understand all the topics listed below except
how a consumer decides between two cars
Economic decisions are made at every level in society. When we try to decide which production method to use among several alternatives, which of the following key economic questions are we trying to answer
how do we produce
Entrepreneurship
human resource that organizes that other 3 factors, development of new ideas about creating things of value
_____ is an example of a choice in the self interest __ is an example of a choice in social interest
i buy pizza for lunch, i am collecting funds to help the flood victims
In the previous graph, the relationship between output produced and cost of production can best be described as the cost of production:
increases at a decreasing rate up to a point then increases as an increasing rate
Human capital ____ that people obtain from edu, training, and work experience. _____ that have been produced in the past and that businesses now use to produce goods and services is capital
is the knowledge and skill, tools instruments machines buildings
choose the statement that is incorrect
it is never the rational choice to decide to enter the labor force immediately following high school
A dog trainer is an example of the factor of production
labor
Which of the following pairs does not match
labor, rent
4 Factors of Production
land, labor, capital, entrepreneurship
Factors of production are grouped into 4 categories, which are
land, labor, capital, entrepreneurship
the resources that are used to produce goods and services- ____ are the factors of producion
land, labor, capital, entrepreneurship
Rent is the income paid for the use of __ Wages are income paid for ___ Profit is the ___ earned by an entrepreneur for running a business interest is the income paid for the use of__
land, labor, income, capital
which covers inflation and unemployme4nt
macro
is the study of how households and businesses make choices, interact in markers, and how the gov influences their choices
micro
if the president announced we should do something to stimulate economic growth this is an example of
normative statement
which of the following has an economy where most resource allocation is determined by central planning authority
north korea
A rational choice is_____
one that compares costs and benefits
These represent what type of graphs
one variable
Marginal Cost
opportunity cost of producing one more unit of good or service calculated as the increase in total cost divided by the increase in output
Scarcity
our inability to satisfy all our wants
We can't avoid having to make choices because _____
our wants exceed the resources available to satisfy them
The stock of computers, factory buildings, and machine tools used to produce goods is known as
physical capital
macro is concerned w the following except
political party affiliation
What is the best descriptor of the relationship between disposable income and consumption spending
positive relationship
A shortage is the amount by which the _____ exceeds the _____
quantity demanded, quantity supplied
Efficiency
resource use is efficient if it is NOT possible to make someone better off without
economics is the study of choice under the conditions of
scarcity
___ are examples of goods and _____ are examples of services
shoes, haircuts
Economics is the ___ the choices that individuals, businesses, governments, and entire societies make as they ____ , and the influences on those choices, and the arrangements that coordinate them
social science that studies; cope with scarcity
An incentive that might encourage him to take the sociology course is
softer grading in sociology
The role of entrepreneurs involved
taking risks
Which of the following illustrates an efficient outcome?
ted cuts the price of his sausages and his profit increases
Marginal Benefit
the benefit a person receives from consuming one more unit of a good or service
Social Interest
the choices that are best for society as a whole making someone else worse off
economist do jobs that require
the collection and analysis of data, the ability to predict future trends, and study to determine ways of using resources more effectively
The opportunity cost of the rio olympics is
the goods and services that would have been purchased w R$7 billion if the facilities were not built unless rio hosted the olympics
which is a two variable graph
the graph on the left
Human Capital
the knowledge and skills a worker gains through education and experience
Goods and Services
the objects that people value and produce to satisfy human wants
Choose the correct statement
the opportunity cost of something is the highest valued alternative that must be given up to get it
Factors of Production
the productive resources used to produce goods and services
When Kanye West gave away tickets, what was free and what was scarce?
the seats available are scarce. there are only a certain amount available
Economics
the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices
Which of these does macro study
the study of how fast prices in general are rising
Macroeconomics
the study of the performance of the national economy and the global economy
Capital
the tools, equipment, machinery, and factories used in the production of goods and services
macroeconomics focuses on which of the following topics
unemployment, inflation, growth, trade
the new clip implies a tradeoff between
using traditional check out methods and using cashierless tech
the news clip deals with
what and how
The what, how, and whom questions in economics are questions about ____
what goods and services do we produce, how do we use the factors of production to produce these goods, and who consumes the good and services that are produced
What is the fundamental fact of life from which all economic problems arise?
what we want as a society is limited by our resources
Which of the following topics is not a macroeconomic question?
what will happen to the price of a computer as more firms produce computers
The Margin
when a choice is made by comparing a little more of something with its cost, the choice is made at the margin
Which of the following questions is a microeconomic question?
will a shortage of plumbers lead to a rise in the wage rate received by plumbers
Labor
work time and work effort, physical and mental efforts of humans
The ___ that people devote to produce goods and services is labor
work time, work effort
The vertical axis on a graph is
y axis
Which of the following formulas is correct for the slope between a and b
y2-y1/x2-x1
the slope at a line tangential to the maximum or minimum of nonlinear curve will always be equal to
zero