ECON 211- Connect Chapter 1

Consumers derive personal satisfaction from goods and services by:

1. acting in a self-interested manner 2.allocating their time and energy to maximize satisfaction

Like the physical and life sciences, as well as other social sciences, economics relies on the ________ method.

Scientific method

Marginal analysis involves the comparison or evaluation of:

the additional cost versus the additional benefit of a decision

marginal analysis involves the comparison or evaluation of:

the additional costs versus additional benefit of a decision

At an output level that is greater than what is optimal:

the marginal cost of producing the good is greater than the marginal benefit

in a world of scarcity

the decision to obtain the marginal benefit associated with some specific option always includes the marginal cost of forgoing something else.

________ the production possibilities curve represents economic growth.

a rightward shift of

Which of the following describes the concept of rational self-interest?

-Individuals look for and pursue opportunities to increase their utility or level of personal satisfaction -Individuals allocate their resources to maximize their satisfaction -Individuals weigh the costs and benefits of their decisions

Specializing and participating in international trade allows an economy to:

1. Circumvent the outputs limits imposed by its own production possibilities curve. 2.increase the quantities of capital and consumer goods available to society.

Combinations of goods that are beyond the production possibilities curve:

1. are currently unattainable 2. require economic growth 3.would require resources that are not currently available

The concept or term that refers to the notion that all variables except those under immediate consideration are held constant for a particular analysis is known as:

1. ceteris paribus 2. the other-things-equal assumption

an outward shift of the production possibilities curve represents:

1. economic growth 2. growth in the factors of production

A statement about economic behavior or the economy that enables prediction of the probable effects of certain action is known as an:

1. economic principle 2.economic theory

Combinations of output that fall inside the production possibilities curve represent:

1. goods that are attainable 2. less total output in an economy 3. inefficient use of resources

economic growth is a result of:

1. improvements in resource quality 2.technological advances 3.increases in the supply resources

Specializing and participating in international trade allows an economy to:

1. increase the quantities of capital consumer goods available to society 2.circumvent the output limits imposed by its own production possibilities curve

economic growth is achieved through:

1. increased supplies of the factors of production 2. advances in technology

the combination of goods that lie on the PPC of a country:

1. represent an efficient utilization of resources 2.are attainable 3.utilize all of an economy's available resources

Shift the Production possibilities curve inward to the left:

1. the number of workers decreases 2. a devastating earthquake destroys numerous production facilities

Shifts the Production possibilities curve outward to the right:

1. the quality of education increases 2. a new technique improves the efficiency of extracting copper from ore.

A nation's PPC can shift outward:

1. through the use of improved production techniques 2. as a result of specialization and trade 3.with an increase in the quality and quantity of resources

A nation's production possibilities curve (PPC) can shift outward:

1. with an increase in the quality and quantity of resources 2. through the use of improved production techniques 3.as a result of specialization and trade

rightward shift of production possibilities frontier represents:

1.economic growth 2.increase in the factors of production

What does each point on the PPC represent?

1.efficiency in production 2. maxium output of two products

which of the following illustrates the attainable combination of two goods that can be produced given a specific set of resources

Production Possibilites Curve

a productions possibilities curve (PPC) illustrates the attainable combination:

Two goods that can be produced given a specific set of resources.

increase in the factors of production enable:

an economy to produce more of both goods on their expanded production possibilities curve

economic principles are generalizations relating to ______ in economic behavior or to the economy itself.

average tendencies

______ growth is the result of increase in quantities of resources, improvements in resource quality and technological advances.

economic

Which of the following enables society to produce more goods with current resources?

improved technology

Points lying _____ the production possibilities curve are attainable, reflecting less total output than can be produced.

inside

the economic term that means incremental "changes in" or additional changes is__________.

marginal

the optimal amount of production occurs where:

marginal revenue equals marginal costs

Due to scarce resources, every individual, whether rich or poor, is faced with an ____ cost when choosing to produce or consume more of one good over another.

opportunity

Points lying _____ the production possibilities curve represent greater, but unachievable levels of output with current inputs, than that at any point on the curve

outside

A _______ lists the different combinations of two products that can be produced with a specific set of resources, assuming full employment.

production possibilities table

An increase in the ______ or ______ of resources or factors of production results in a shift outward of the production possibilities frontier

quality, quantity

The law of increasing opportunity costs states that as production of a particular good _________, the opportunity cost of producing an additional unit _________.

rises, rises

_________ economic resources means limited goods and services

scarce

The concept that "there is no free lunch" reflects the notion that:

scarce resources are used to produce so-called "free goods" that have alternative uses that are given up in order to produce said "free" goods

Like the physical and life sciences, as well as other social sciences, economics relies on the ________ method.

scientific

advances in ____ allow society to produce more goods with available resources.

technology

Utility is defined as

the satisfaction or pleasure obtained by consumers from consuming a good or service

Individuals' economic decisions are purposeful or rational because:

they weigh benefits and costs

The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as

utility