Chapter 1 & 2 Econ Quiz (Ivy Tech)

Normative Economics may be defined as:

Discussions of economics that include appraisals of what is good or bad, right or wrong

An economic resource may be defined as:

Anything that is capable of producing an economic good and indirectly satisfaction

which of the following is an example of scarcity?

Camden would like to have more designer clothes than he can afford.

Macroeconomics deals with the analysis of all of the following questions except:

How does Microsoft price its software packages

An economist at the university of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently. In order to develop a model, the professor should take which steps?

Identify the problem, develop a model based on simplifying assumptions and test the model to formulate a conclusion

The mental and physical capacity of workers to produce goods and services is known as:

Labor

the services of farmers are an example of:

Labor

Using the graph which point represents an efficient point to operate on

Points A and C

Bill has $10 to spend on a Superman, Batman, or an X-Men T-shirt. Bill buys the Superman T-shirt and the Batman shirt was a close second choice. What is the opportunity cost?

The batman t-shirt

In economics, the term marginal refers to:

The change or difference from a current situation

Scarcity is a problem:

because human wants are unlimited while resources are limited

Economics is the study of how people:

make choices to produce and consume goods and services

the economic system that is generally considered to be the most efficient at answering the want to producee and the how to produce questions is the :

market economy

A rational decision maker always chooses the option for which marginal benefit is:

more than marginal cost

the highest valued alternative that must be given up in order to choose an option is called the:

opportunity cost

The question "should more capital goods be produced instead of consumer goods?" is an example of which fundamental economic question?

the want to produce question

which fundamental economic question requires society to choose the technological and resource mix used to produce goods

the how to produce question

The economic system that answers the Want, How, and For Whom questions using prices determined the way they have always been answered is a:

traditional Economy

a point outside the production possibilities cure represents a combination of goods that is:

unattainable

A production possibilities curve shows the:

various combinations of goods that can be produced