Microeconomics quiz answers
Which of the following is the cause and the effect hard to untangle?
a. dense forests and heavy rains
Which of the following are considered scarce resources?
diamonds, time, pepporoni pizzas, oil
What can be considered an economic agent?
firms, students, consumers, and sports teams
Which of the statements is not a correct explanation of empiricism?
It has nothing to do with optimization and equilibrium and it cannot be monitored.
Which of these statements if true would help you conclude that there is indeed a cause and effect relationship between the vaccine and autism in children?
The MMR vaccine contains thimerosal, a preservative that is known to increase the risk of autism & the survey was conducted on a large group whose members were randomly selected.
Economics differs from these other social sciences because it also addresses these three key concepts
optimization, equilibrium and empiricism.
The goal of optimization for an individual is to maximize ____
overall well being.
Free riding occurs because
people sometimes pursue their own private interests and don't contribute voluntarily to the public interest.
Free riding occurs when ______ are out of sync with ______
people's private benefits, the public interest.
During the process of optimization economists believe that people are considering ___
the feasibility of a choice, given the information available at the time.
Your budget constraint for entertainment illustrates the concept of ___ since as you increase your purchase of one item, you must ____
trade-offs, must decrease your purchases of the other item.