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