Econ 1
Which of the following examples illustrate why even the 1,826 billionaires in the world face scarcity? (1) Mark Zuckerberg wants everyone in the world to have internet access. (2) Donald Trump ran for the job of President of the United States. (3) Bill Gates wants to eradicate malaria (4) George Soros thinks China will implode (5) Warren Buffet is a successful fund manager (6) Sergey Brin wants the content of every book ever published to be available to a Google search. The examples above that illustrate scarcity are numbered_________.
1,3,6
When you pay money to watch a movie at the cinema, you are buying_______.
A service
Label each entry in the list as dealing with a microeconomic topic or a macroeconomic topic: a { } Motor vehicle production in China is growing by 10 percent a year. b { } Coffee prices rocket. c { } Globalization has reduced African poverty. d { } The government must cut its budget deficit. e { } Apple sells 20 million iPhone a month
A) Micro B) Micro C) Macro D) Macro E) Micro
An economy is________
An area where the production and consumption of goods and services take place
When a country trades with other countries, we describe its economy as___________
An open economy
The factor of production__________, and the factor of production ________.
Capital earns interest; entrepreneurship receives a profit or incurs a loss.
Which of these statements is false?
Choices that are made in the self-interest cannot benefit the social interest.
Which of these statements is true?
Communism was never implemented in any country in civilized history.
The two types of goods and services produced are________. An example of______.
Consumption goods and services and capital goods; a consumption good is your iPad, and an example of a capital good is the pizza oven at a pizzeria
For consumers, ski trips and ski jackets are complements. If the price of a ski trip increases, the demand for ski jackets will______
Decrease, and the demand curve for ski jackets will shift leftward
The news clip implies that the law of demand______ work in the real world because______
Does; "other things have not remained the same" as some event must have increased the demand for airline travel
Mildred and Robert are the only buyers in the market for DVDs. Mildred buys 7 DVDs when the price of a DVD is $10.00, 6 DVDs when the price of a DVD is $11.00 and 5 DVDs a month when the price of a DVDs is $15.00. Robert buys 18 DVDs a month when the price of a DVD is $10.00, 10 DVDs when the price of a DVD is $11.00, and zero DVDs when the price of a DVD is $15.00. Therefore, in the market for DVDs, the quantity demanded______.
Increases as the price falls
Economics studies choices that arise from on fact. What is that fact?
Everyone has unsatisfied wants while resources are limited.
The two tenets that distinguish modern-day capitalism from other economic systems are_______>
Free markets and private property
Gustavo graduates from college and his income increases by 20,000. Nothing else changes. Gustavo decreases the quantity of hot dogs and toast that he buys and increase the quantity of gourmet ice cream that he buys. For Gustavo_____
Gourmet ice cream is a normal good
Expenditure on consumption goods and services flows from______ through the________ markets.
Households to firms: goods
Indicate all the items in the following list that are not factors of production and explain why. Item 1: Trucks used by FedEx to make deliveries Item 2: Your dog Item 3: Undiscovered coal reserves Item 4: A garbage truck Item 5: A pack of bubble gum Item 6: A gardener
Item 2, 3 and 5 because they are not productive resources used to produce goods and services- land, labor, capital, or entrepreneurship.
The factor or production MOST people supple is_______ and the income these people earn is _______
Labor; wage
Pure socialism failed due to these two factors:
Lack of incentive and corruption
The factor of production _________, and the factor of production_________.
Land earns rent; labor earns wages
Self-interest
Making choices that best benefit the individual who makes.
Social-interest
Making choices that best benefit the society as a whole.
If the bank forecloses on the delinquent borrower, the bank is pursuing________.
Self-interest
If the borrower can't afford to keep up the payments and defaults, the borrower is pursuing_______.
Self-interest
Suppose a person gets a loan from a bank to buy a new home. The borrower is pursing _________ and the bank is pursuing_______.
Self-interest; self interest
Consider the market for coffee. Suppose the price of a cup of coffee falls. Explain the effect of this event on the quantity of coffee demanded and on the demand for coffee.
The quantity of coffee demanded increases and the demand for coffee is unchanged.
If the price of a laptop rises, with all other influences on buying plans remaining the same_____
The quantity of laptops demanded decreases
Demand is _____ when all other influences on buying plans remain the same.
The relationship between the quantity demanded of a good and the price of the good
Capital consists of ________.
Tools, instrument, machines, buildings, and other items that have been produced in the past and that businesses now use to produce goods and services
The "money flows" are
factor incomes, household and government spending on goods & services, taxes, & transfers
The law of demand states that______ the_____ the price of a good, the smaller is the quantity demanded; and the______ the price of a good, the greater is the quantity demanded
other things remaining the same; higher; lower
