MICRO SmartBook 1

A production possibilities curve with an increasing slope is the result of which of the following? Multiple choice question. The law of increasing opportunity costs The economizing problem The scarcity of resources The other-things-equal assumption

The law of increasing opportunity costs

Which best defines utility? The satisfaction or pleasure obtained from consuming a good or service The utilization of economic resources by consumers when engaging in consumption The satisfaction or pleasure obtained from producing a good or service The utilization of economic resources by producers when engaging in production

The satisfaction or pleasure obtained from consuming a good or service

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

Utility

Suppose you are given a $100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will involve which of the following? A decision between attainable and unattainable combinations of the goods under consideration An evaluation of the unlimited resources used in the production of each good considered The available supply of each good considered A comparison of marginal benefits and marginal costs for each good considered

A comparison of marginal benefits and marginal costs for each good considered

Which of the following are ways of expressing the meaning of ceteris paribus? (Check all that apply.) Assuming additional factors, other than those under consideration, are given equal consideration Assuming other things are equal Assuming factors other than those being considered in a particular analysis do not change Assuming additional factors, other than those under consideration, play a significant role in analysis

Assuming other things are equal Assuming factors other than those being considered in a particular analysis do not change

If economists examine the relationship between the price of a good and sales of that good while ignoring other related factors, or assuming those other factors are equal, they are using which of the following? Marginal costs Ceteris paribus The scientific method Scarcity theory

Ceteris paribus

______ comes in the form of wages, interest, rent, profit, and even from government programs. Multiple choice question. Income Spending Taxes Transfers

Income

From an economic standpoint, ______ includes all natural resources used in the production process. Multiple choice question. labor capital land supply

LAND

Which discipline studies the economy as a whole or its basic subdivisions or aggregates? Macroeconomics Normative economics Positive economics Microeconomic

Macroeconomics

Which of the following are issues most explored in microeconomics? Measuring the price of specific goods Measuring total revenues of a firm Unemployment and inflation rates The expenditures of a government entity The level of public debt

Measuring the price of specific goods Measuring total revenues of a firm The expenditures of a government entity

Which discipline studies the decision-making process of customers, workers, households, and business firms on an individual basis rather than as aggregates? Microeconomics Positive economics Negative economics Macroeconomics

Microeconomics

Positive economics ______ value judgments, tries to establish ______ statements about economic behavior, and deals with ______ economic events. encourages; normative; potential encourages; scientific; potential avoids; scientific; actual encourages; scientific; actual avoids; normative; actual

avoids; scientific; actual

All natural resources, human resources, and manufactured goods that go into the production of goods and services are considered as society's scarce _____ resources.

economic

The problem refers to the need to make choices because economic wants exceed economic means. (Enter one word in the blank.)

economizing

Scarcity of economic resources _____. results in poverty and unequal distribution of wealth results in deflation restricts options and demands choices leads to the production of unlimited goods and services

restricts options and demands choices

______ economic resources means limited goods and services. Multiple choice question. Insatiable Scarce Tangible Physical

scarce

The outward bowing shape of the production possibilities curve is due to ______. Multiple choice question. the law of decreasing opportunity costs the law of diminishing marginal utility the law of increasing opportunity costs the diminishing marginal benefits

the law of increasing opportunity costs

Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service ______. when the marginal benefit is greater than the marginal cost when opportunity costs are greater than marginal benefits by examining only marginal costs by examining only marginal benefits

when the marginal benefit is greater than the marginal cost