Econ Chapter 1-2 Quiz Questions
Timothy is given $20 each week to buy lunch and he only chooses between two goods, burritos and teriyaki bowls. If burritos cost $2 each and teriyaki bowls cost $4 each, what is the opportunity cost of one teriyaki bowl?
2 burritos
When choosing the amount of two goods to produce on a production possibilities frontier, the particular mix of a good produced by a society maximizes societies desires given their resource constraints is said to be _______
Allocative Efficient
What is the name of the model that represents the exchange between households and firms in the market for goods and services and the labor market?
Circular Flow Diagram
Timothy is given $20 each week to buy lunch and he only chooses between two goods, burrito and teriyaki bowls. The combinations of teriyaki bowls and burritos that cost exactly $20, thereby exhaling Timothys budget called the ________
Budget Constraint
Is a term referring to the fact that for many goods as the level of production increases, the average cost of producing each individual unit declines
Economies of Scale
The bowed out shape often seen in a production possibilities frontier is a result to?
Increasing opportunity cost between the two goods
As a person consumes more of a good, the _____ from each additional unit of the food declines
Marginal utility
What is a true command economy?
Means all decisions flow through a central government
Though certainly on the market end of the spectrum, the presence of institutions such as social security or even municipal transportation services suggest the economic system of the United States is best described as a _______
Mixed economy
Timothy is given $20 each week to buy lunch and he only chooses between two goods, burritos and teriyaki bowls. All possible combinations of burritos and teriyaki bowls in which Timothy can afford each week is called Timothy's ________
Opportunity Set
Which of the following statement about scarcity is true? Scarcity only affects countries with large populations Scarcity only impacts non renewable nautral resources Sacrcity refers to the situation that human wants exceed what is available Wealthy individuals, like Bill Gates, are not faced with the problem of sarcity
Sacrcity refers to the situation that human wants exceed what is available
According to the text, economics is best described as the study of how humans make decisions in the face of ________.
Scarcity
Homer decides to spend an hour playing basketball rather than studying. His opportunity costs can be described as the benefit to his grades from studying for an hour Nothing since he is playing for free at a local park The wear and tear on his sneakers from playing basketball Nothing since he would rather play basketball
The benefit to his grades from studying an hour
In a true command economy, what determines the answers to the most basic economic questions a society must face?
The government
Microeconomics is the study of
how individual agents within the economy make choices
A point inside the production possibilities frontier is said to be
inefficient
A point outside the production possibilities frontiers said to be
unattainable with current resources