Test 1 Economics Chapter 1-4

In 1960, the percentage of total output the United States devoted to health care was about ________ percent.

5

A choice whether to do a little more or a little less of something.

A choice made at the margin.

If a demand curves shifts to the left, then:

A lower equilibrium price and quantity would result.

The primary emphasis is macroeconomics is on:

Aggregates in the economy.

Ceteris Paribus means:

All other things unchanged.

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 of people are willing and able to purchase is:

Demand.

The process through which an economy's production possibilities curve is shifted outwards is:

Economic growth.

I'm enforcing the legal system, the government in a market capitalist economy acts to:

Enforce contracts, enforce property rights, and discourage fraud.

A person who seeks to earn profits by finding ways to organize factors of production in called a(n):

Entrepreneur

The set of acquired skills and abilities that workers bring to the production of goods and services is:

Human Capital

In the 1960s the dominant maker of mainframe computers was:

IBM.

Resources from nature that can be used to produce other goods and services are called:

Natural resources.

Anything whose value can change is a:

Variable

The bulk of the nation's output is produced by:

corporations.

Between 1930 and 1933, the prices received by farmers tended to:

decrease.

In the personal computer industry, the reason for the fall in prices and the increase quantity after 1980 was:

primarily due to technological change and an increase in the number of sellers.

How a supply curve is sloped and located is affected by:

resource prices.

Much of the discussions about the health-care "problem" in the United States has focused on:

rising spending for health care.

A firm owned by one individual is called a:

sole proprietorship.

What 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.

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

In 2015, the percentage of total output the United States devoted to health care was about ________ percent.

18

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 other goods will be greater and greater.

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

Improvements in technology provide benefits to:

Consumers through lower prices, workers although some jobs may be eliminated, and firms through lower production costs.

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.

Health care is a:

Normal good.

Statements that make value judgements 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 of economics is:

People have unlimited wants facing limited means to satisfy them.

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.

A hypothesis is an assertion that can be:

Proven to be false.

Economics is a:

Social science that deals with making choices among alternatives.

Most firms in the United States today are:

Sole proprietorships and partnerships.

The basic concern of economics is to:

Study the choices people make.

A supply curved that is upward sloping means that:

Suppliers will want to sell more at higher prices.

A curve that shows the relationship between the price of a good and the quantity supplied during a particular period, all other things unchanged, is the:

Supply curve.

The prices of factor of production, returns from alternative activities, technology, seller expectations regarding future prices, and the number of sellers are called:

Supply shifters.

When economists study the behavior of sellers, they are studying:

Supply.

Knowledge that can be applied to the production of goods and services is:

Technology

The fundamental economic questions that every economic system must answer are:

What, how, and for whom.

During the Great Depression:

agriculture was hit particularly hard.

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.

Human capital is:

the set of acquired skills and abilities that workers bring to the production of goods and services.

In the market for health care:

there has been no effect of the presence of third-party payers, and providers are encouraged to supply a greater quantity than they would without third-party payers.

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 __________ payer system.

third-party