Introduction to Economics

In Economics in One Lesson, Hazlitt argues that although purchasing power might look like it has increased after a war, these seemingly good economic results are merely the result of ______.

inflation

If an action has a net benefit of $80 and a marginal benefit of $100, what is the marginal cost?

$20

Economic policies that help one group of people, such as farmers, at the expense of everyone else is often the result of __________.

narrow thinking

What flaw in thinking in responsible for the broken window fallacy?

narrow thinking

Which of these is the best example of a bad economic choice a business might make?

opening a store in a bad location

In Economics in One Lesson, Hazlitt argues that "effective economic demand" requires ____________.

purchasing power

Economics is the study of how people make choices in the face of _______.

scarcity

When someone considers only the immediate results of a particular choice, they are using _______________.

short-term thinking

The opportunity cost of a choice is the value of ____________.

the best alternative action you didn't take

Why is Economics in One Lesson still relevant today despite being decades old?

Public officials continue to advocate for variations of the same bad economic policies.

Why wouldn't oil have been considered a natural resource 500 years ago?

There was no known use for it

Which of the following are true about trade-offs?

They involve comparing the expected value of different choices.

Services are _________ for consumers.

actions performed

What was Hazlitt's purpose for writing Economics in One Lesson?

to demonstrate the fallacies and poor reasoning the American government was using to support bad economic policies

Comparing benefit and cost is useful whenever you have to make a _____________.

trade-off

Which of the following are ways that we can increase the amount of natural resources we have available to us? (choose all that apply)

- discovering new methods to extract resources -discovering new uses for resources

Which of the following are examples of microeconomic questions? (choose all that apply)

-If the country experiences another recession, will fewer people attend theme parks like Disney World? - What will happen to the price of bacon if there is an outbreak of swine flu?

What characteristics does a good need in order to be considered a capital resource? (choose all that apply)

-It can be used to produce other goods and services. -It was produced by people.

Which of the following are the two primary considerations Christians must take into the study of economics? (choose all that apply)

-We are called to be stewards of the Earth. -Humanity is fallen and has a sinful nature.

Which of the following would be considered capital resources? (choose all that apply)

-a hammer used to build a house -a desk in an office

Which of the following must take scarcity into account when making decisions? (choose all that apply)

-consumers -governments -businesses

Which of the following could be considered marginal costs? (choose all that apply)

-hearing loss -three hours - one hundred dollars

Which of the following are examples of free goods? (choose all that apply)

-sunlight -air

In Chapter 3 of Economics in One Lesson, "The Blessings of Destruction," Hazlitt argues against the idea that the destruction caused by _________ resulted in a more prosperous society.

World War II

Marginal cost is the change in total cost resulting from __________.

a particular action