Exam 1
In 1960, the percentage of total output the United Stated devoted to health care was about ___ percent.
5
The basic concern of economics is to:
study the choices people make
A supply curve that is upward sloping means that:
suppliers will want to sell more at higher prices
In the 1960s the dominant maker of mainframe computers was:
IBM
Positive statements:
are factual and can be tested
The law of increasing opportunity cost says that:
as output increases for one good on its production possibilities curve, the opportunity cost of additional units of the other good will be greater and greater
A choice made ___ is a choice whether to do a little more or a little less of something.
at the margin
For a factor of production to be called capital it must:
be produced
During the Great Depression:
by 1933, 25 percent of the nation's workers had lost their jobs
The three broad types of factors of production are:
capital, labor, and natural resources
Something whose value does not change is a:
constant
The bulk of the nation's output is produced by:
corporations
Between 1930 and 1933, the prices received by farmers tended to:
decrease
A negative relationship between the quantity demanded and price is called the law of ___.
demand
The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:
demand
The relationship between the price of a good and the quantity people are willing and able to purchase is:
demand
In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:
primarily due to technological change and an increase in the number of sellers
A hypothesis is an assertion that can be:
proven to be false
How a supply curve is sloped and located is affected by:
resource prices
According to the textbook, much of the discussion about the health-care "problem" in the United Stated has focused on:
rising spending for health care
Economics is a:
social science that deals with making choices among alternatives
A firm owned by on individual is called a :
sole proprietorship
Most firms in the United Stated today are:
sole proprietorships and partnerships
Technology is:
knowledge that can be applied to the production of goods and services
The factors of production are:
labor, capital, and natural resources
A theory that has won virtually universal acceptance is a:
law
Making choices that are expected to achieve the highest possible value for some objective is termed:
maximizing
The branch of economics that examines the choices of consumers and firms is:
microeconomics
A simplified representation of a particular problem is a:
model
IN 2015, the percentage of total output the United States devoted to health care was about ___ percent.
18
In the market for health care:
B and C are true
If a demand curve shifts to the left, then:
a lower equilibrium price and quantity would result
The primary emphasis in macroeconomics is on:
aggregates in the economy
Ceteris paribus means:
all other things unchanged
Improvements in technology provide benefits to:
all the above
In enforcing the legal system, the government in the market capitalist economy acts to:
do all the above
The process through which the economy's production possibilities curve is shifted outward is:
economic growth
A person who seeks to earn profits by finding ways to organize factors of production is called a(n):
entrepreneur
The set of acquired skills and abilities that workers bring to the production of goods and services is:
human capital
Resources from nature that can be used to produce other goods and services are called:
natural resources
Health care is a(n):
normal good
Statements that make value judgments are:
normative
Scarcity in economics means:
not having sufficient resources to produce all the goods and services we want
A key theme fundamental to all the economics is:
people have unlimited wants facing limited means to satisfy them
A maximum price set below the equilibrium price is a:
price ceiling
A minimum price set above the equilibrium price is a:
price floor
A price that the government guarantees farmers will receive for a particular crop is a(n):
price support
The key signals that send messages to buyers and sellers to buy or not to buy or to sell or not to sell are, all other things unchanged:
prices
When economists study the behavior of sellers, they are studying:
supply
A curve that shows the relationship between the price and quantity supplied during a particular period, all other things unchanged, is the:
supply curve
In the textbook, the prices of the factors of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:
supply shifters
Knowledge that can be applied to the production of goods and services is:
technology
Agriculture was hit particularly hard during ___:
the Great Depression
Which of the following would lead to an increase in the demand for health care?
the average population age increases
Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:
the fallacy of false cause
The slope and location of the demand curve depend on:
the number of buyers
Factors of production are:
the resources the economy has available to produce goods and services
Human capital is:
the set of acquired skills and abilities that workers bring to the production of goods and services
Opportunity cost is:
the value of the best alternative forgone in making any choice
A hypothesis that has been tested extensively without being rejected and has won widespread acceptance is a:
theory
An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n) ___ payer system
third-party
Anything whose value can change is a:
variable
The fundamental economic questions that every economic system must answer are:
what, how, and for whom
