Economics principles

There are no costs to some decisions. True False

False

In most fast-food chains there is one person to take the order, another to make each item of food, and another to bag the items up. This is referred to as: Equilibrium Trade-offs Marginal Specialization

Specialization

Economics is the study of how individuals and societies a) maximize the quantity of goods produced and consumed. b) allocate scarce resources to satisfy virtually unlimited wants and needs. c) together control how money circulates and what is purchased. d) respond to incentives while avoiding opportunity cost, to create value. e) relate to one another at the interface between micro and macro.

b) allocate scarce resources to satisfy virtually unlimited wants and needs.

A central and fundamental theme in economics is that: for me to have something, someone else must be willing to give it up. the United States is a rich country, but we are simply not aware of it. there are not enough resources available to satisfy all the ways a society wants to use them. we can build as much as we want, since resources are unlimited.

for me to have something, someone else must be willing to give it up.

Roommates Samara and Zendaya are hosting a Christmas party and have to make snacks for their guests and ornaments for themselves. Samara and Zendaya know that to finish both tasks as quickly as possible, each should focus on just one task, but they don't know who should do what. Samara and Zendaya should determine which roommate: has the absolute advantage in preparing snacks. has the comparative advantage in preparing snacks. can make the most snacks in a given amount of time. can make all the snacks in the least amount of time.

has the comparative advantage in preparing snacks.

If a country specializes according to its own comparative advantage and then trades with other nations: it will consumer at a lower level than before the trade it can consume at a higher level it will consumer at the same level as before It cannot be determined

it can consume at a higher level

Whenever a good is purchased: the cost of the good is its opportunity cost. the cost of the good is easy to measure in terms of the price paid for it. overall efficiency increases. scarcity will increasingly constrain the future availability of the good.

the cost of the good is its opportunity cost.

There are many freshwater lakes in the United States. However, freshwater is scarce because: it has no alternative uses. there is not enough of it to meet all needs. the government limits its use through regulations. it has a high opportunity cost.

there is not enough of it to meet all needs.

Please select the economic term that is best described by each statement below. Comparing the benefits and costs of engaging in an activity. recession trade-off scarcity resources

trade-off

For a student who owns his or her own apartment near the university campus and so does not need to live in a dorm, the cost of going to university is: tuition and the cost of housing. tuition, the cost of housing, and the cost of school supplies. tuition, the cost of school supplies, and forgone income. forgone income only.

tuition, the cost of school supplies, and forgone income.

Scarcity occurs in economics because: we often do not have sufficient resources to achieve our objectives. the wants of individual consumers are limited. there are poor people even in rich countries. taxes keep prices higher than they would otherwise be.

we often do not have sufficient resources to achieve our objectives.

The opportunity cost of a good is: smaller during periods of economic recession. equal to the monetary cost of the good. larger during economic booms. what is given up to acquire the good.

what is given up to acquire the good.

For an economist, the cost of a good is: For an economist, the cost of a good is: what you gave up to get it. always equal to the true market value of the good. the quantity of resources used to produce it.

what you gave up to get it.

Emma spends $40,000 for one year's tuition at university. The opportunity cost of one year at university for Emma is: whatever she would have purchased with the $40,000 plus whatever she would have earned had she not attended university. $40,000. whatever she would have purchased with the $40,000 had she not attended university. whatever she would have earned had she not attended university.

whatever she would have purchased with the $40,000 plus whatever she would have earned had she not attended university.