econ quiz questions

according to the theory of comparative advantage, specialization and trade will benefit:

all trading partners who specialize on goods where they have comparative advantage

in the united states, property rights:

are guaranteed by two amendments to the U.S. Constitution

the principle of increasing marginal opportunity cost states that the more resources devoted to any activity, the _____________ the payoff to devoting additional resources to that activity.

smaller

which of the following is not a possible opportunity cost of attending college?

the cost of housing

when you think of an arrangement or institution that brings buyers and sellers of a good or service together, what are you thinking of?

a market

economics:

is concerned with how people respond to incentives

macroeconomics is NOT concerned with

political party affiliation

absolute advantage is the ability of an individual, firm, or country to:

produce more of a good or service than competitors using the same amount of resources

in the circular flow model, which of the following refers to markets where goods such as computers or services such as medical treatment are offered?

product markets

jim declined to take part in a health study on free basis but changed his mind after being offered $1,000 to participate in the study. Jim's behavior best illustrates which economic principle?

People respond to economic incentives

in what type of economy does the government decide how economic resources will be allocated?

a centrally planned economy

__________ goods and services are those bought by business to be used to increase efficiency or enhance production

capital

according to the rationality assumption, people:

do not intentionally make decision that would leave them worse off

one of the first steps in deciding whether to complete your education is to:

evaluate the marginal cost and marginal benefit of the decision

in the circular flow model of the economy, ____________ are the suppliers of goods and services

firms

if a country has a comparative advantage in the production of a good, then that country:

has a lower opportunity cost in the production of that good

macroeconomics can NOT be used to understand _________

how a consumer decides between the purchase of two different 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 the product?

which of the following is a positive economic statement?

if minimum wage rates rise, then unemployment will rise

contracts, insurance, patents and accounting rules are:

inventions that make a market work better

economists believe that an individual or firm should continue any activity until:

marginal benefit is equal to marginal cost

the united states economy is best classified as a:

mixed economy