Econ H Ch 1 Test
According to circular-flow model, the flows of resources and products are supported by the flows of income and expenditure
true
Because productive resources are scarce, goods and services are scarce, too
true
Goods and services are scarce
true
Example of a renewable resource, if used properly.
wildlife
Renewable resource, if handled properly?
wildlife
Labor is a type of human resource
true
Productive resources are defined as the inputs used to produce the goods and services that people want
true
Productive resources include human resources and capital resources
true
Tutoring is an example of a capital good
true
an exhaustible resource can easily be used up
true
future economic trends are not influences by economic theories
true
market economics might focus on the breakfast cereal industry
true
there is no such thing as a truly free good
true
time and information are essential to making rational consumer choices
true
Ex of a natural resource:
water
Define the term entrepreneur
A person who tries to earn a profit, a person who develops a new product, a person who improves an existing product
If you decided to attend a concert instead of babysitting, which of the following did you need to consider? A. Opportunity cost B. Sunk cost C. Scarcity D. Economic theory
A. Opportunity cost
In the seventeenth century, why did many glassmakers in England refuse to relocate to Virginia? A. The opportunity cost of doing so was too high B. The opportunity cost of doing so was too low C. There was no opportunity cost involved D. There was no consideration of opportunity cost
A. The opportunity cost of doing so was too high
Which of the following statements is true of opportunity costs? A. It is the value of all alternatives you pass up when you make a choice B. It is the value of the best alternative you give up when you make a choice C. It can only be measured in dollar terms D. It is the same for all individuals
B. It is the value of the best alternative you give up when you make a choice
Which of the following would lead to a sunk cost? A. Buying a new CD at an outlet store B. Putting a non-refundable deposit at one college and then attending another C. Deciding to study on a Friday night instead of going to a party D. Paying the landscaper to cut your lawn
B. Putting a non-refundable deposit at one college and then attending another
Which of the following is an example of a sunk cost? A. Exchanging one brand of tomato sauce for another one at the grocery store B. Ordering dessert at a restaurant even though you're full C. Throwing away the newspaper before you've read it because your cat tore it into pieces D. Buying a new tire
C. Throwing away the newspaper before you've read it because your cat tore it into pieces
All circular-flow model focus on interactions between households and firms
False
Making rational consumer choices can be done without time and information
False
Once the opportunity cost of attending college is calculated, it is clear that it is more useful for every young person to go to college instead of enter the work force.
False
Opportunity costs are always measured in dollar amounts.
False
People make decisions based upon the expected opportunity cost of a choice.
False
You should carefully consider sunk costs when making economic decisions.
False
Your opportunity cost never depends on your alternative.
False
Which of the following statements best describes the economic problem?
The productive resources needed to satisfy our unlimited wants are too scarce to do so
What defines economics?
The study of how people use scarce resources to satisfy unlimited wants
Ex of a capital good?
bulldozer
Good:
deli meat
A bus station is an example of capital good
true
An entrepreneur is...
-a person who tries to earn a profit -a person who develops a new product -a person who improves an existing product
Subjects of economics:
-unemployment rate -stock market -shoe industry NOT -anything that's free
Which of these is the ultimate limiting factor in making choices? A. Wealth B. Knowledge C. Time D. Location
C. Time
Which of these does not describe sunk costs? A. Can't be recovered B. Have already been incurred C. Are irrelevant D. Will be refunded
D. Will be refunded
What is an example of a good?
Deli meat
If you must stay at home and study for an upcoming economics test, the opportunity cost of studying would most likely be highest at which of the following times? A. Monday evening B. Wednesday morning C. Thursday afternoon D. Friday evening
Friday evening
A productive resource is scarce if it is not freely available
true
According to economists, which of these leads the average person to choose the most valued alternative among a number of possibilities? A. Rational self-interest B. Scarcity C. Sunk cost D. Opportunity cost
Rational self-interest
Provide an example of an entrepreneur who introduced a new product or found a better way to produce an existing one.
Steve Jobs, Elon Musk, and whomever else your heart wants
In deciding if you want to attend college, which of the following would not involve an opportunity cost? A. Value of goods and services that could be purchased with money spent on books B. Value of goods and services that may be purchased with tuition money C. the money you could earn at a full-time job D. The cost of room and board
The cost of room and board
Which of the following accurately describes ecconomics?
The study of how people use scarce resources to satisfy unlimited wants
Although it is assumed that people are driven by rational self-interest, this does not mean that people are not concerned for others
True
Because acquiring information about alternatives is costly and time-consuming, you usually make choices based on limited or even faulty information.
True
Economists agree on the most theoretical principles based on positive economic analysis
True
Even a person with unlimited wealth must deal with opportunity costs.
True
Households both demand services and supply resources in the economy
True
In the context of economics, marginal is defined as incremental or additional
True
It is not wise to spend your time and effort figuring out how to avoid sunk costs.
True
Market economics might focus on the shoe industry
True
Sunk costs are irrelevant.
True
With every choice comes an opportunity cost.
True
Example of a natural resource
Water
How does the scarcity of your time affect your study/homework habits?
You have to decide which subjects to study more for; organize time
Example of a capital good
a screwdriver
A good is free if it involves no apparent cost to you
false
An exhaustible resource can be drawn upon indefinitely, as long as it is used widely
false
Depending on the situation, an entrepreneur does not always need to assume the risk of success or failure in a business venture
false
Economic theories are directly responsible for causing future economic trends
false
Getting a manicure is an example of a good, not a service
false
In order to be accurate, theories should be detailed in nature
false
a tree is an example of a capital resource
false
economic decision makers need not consider all costs that are related to their choice
false
the problem of a scarce resources but unlimited wants exists only for the poor
false
Productive resources
human resources, natural resources, capital resources
Productive Resources:
human resources, natural resources, capital resources NOT: goods and services
Which of the following statements best describes the ecconomic problem?
the productive resources needed to satisfy our unlimited wants are too scarce to do so
types of goods subject to economic interpretation
the unemployment rate, the stock market, industries
Service:
writing
What is an example of a service?
writing