Microeconomics Online Chapter 1 Study Problems
Terms
undefined, object
copy deck
- Every society is faced with the problem of _____, or not enough resources to satisfy wants.
- scarcity
- _____ is the study of how people choose to allocate limited resources to satisfy unlimited wants.
- economics
- Economists classify resources or factors of production as land, _____, and capital.
- labor
- _____ is the the study of economics that focuses on the behavior of small units (buisiness firms, consumers, etc.) within the economy
- microeconomics
- ______ means that while some variables whill change in an economic model, everything else will be held constant.
- ceteris paribus
- Human-made resources or _____ consist of tools, factories, and equipment.
- capital
- _____ is the study of economics that focuses on the problems of inflation, unemployment, and growth or the behavior of the entire economic system.
- macroecomomics
- _____ economics is the application of ethics and economic philosophy to the study, and is subjective.
- normative
- A decision by policy makers to increase efficiency will mean a reduction in _____ because there is always a trade-off between the two.
- equity or equality
- ____ is a term used by economists for natural resources such as oil, water, iron ore, oil, etc.
- land
- The study of what is, or the objective study of economics in which economic behavior is explained and described is called _____ economics
- positive
- _____ is a standard used by economists to evaluate how economic decisions and poicymaking affect the allocation of resources.
- efficiency
- A decision by poicy makers to increase efficiency will mean a reduction in _____ because there is always a trade-off between the two
- equity or equality
-
Scarcity can be eliminated if it (is)
a) people satisfy needs rather than wants
b) new resources are discovered
c) the output of goods and services is increased
d) impossible - d
-
Which of the following is NOT a factor of production?
a) Computer software
b) Dollars
c) Water
d) Engineer
e) Truck - b
-
An economic model is a
a) presentation of all relevant aspects of real-world events
b) simplified description of reality used to understand the way variables are related
c) data set adjusted for irrational actions of people
d) v - b
-
Economics is the study of
a) the government decision making process
b)how to successfully operate a business
c) choices because of the problem of scarcity
d) value judgement of the relationship between variables - c
-
Not included in the study of microeconomics is (are)
a) unemployment
b) union wages
c) computer prices
d) antitrust laws (laws that encourage competitive markets)
e) monopolies - a
-
"The government should dismantle the social security system." This is an example of
a) positive economics
b) ceteris paribus
c) fallacy of association
d) normative economics - d
-
Which of the following is an example of positive economics?
a) Given a budget surplus, I think taxes should be cut.
b) The President is doing a great job handling the economy.
c) I think interest rates will continue to fall.
d) - d
-
Not included in the study of macroeconomics is (are)
a) inflation
b) economic growth
c) oligopolies
d) the Federal Reserve
e) investment spending - e
-
Normative economics
a) is the study of what is
b) is objective
c) explains and describes economic behavior
d) involves opinions based on ethics and economic philosophy - d
- T/F Normative economics is the study of what ought to be.
- T
- T/F According to economists, money is a factor of production or a resource necessary to produce output.
- F
- T/F A Federal Reserve policy to change interest rates would be included in the study of macroeconomics.
- T
- T/F It is possible to increase income taxes and reduce income equality at the same time.
- T
- T/F Positive economics is the objective or scientific study of economic behavior.
- T
- T/F A suit by the Justic Department to block a merger because it may lessen competition would be included in the study of microeconomics.
- T
- T/F The statement "Raising payroll taxes rather than lowering retirement benefits is the best solution for keeping the Social Security System financially solvent" is an example of positive economics.
- F
- An individual who sees profits by combining resources to produce innovative and creative products.
- entrepreneur
- Inputs that are used to produce goods and services.
- resources
- A factor of production other than land or capital.
- labor
- A natural resource.
- land
- Human-made goods used to produce other goods.
- capital
- _____ economics is the study of what is.
- positive
- A phrase that means while certain variables change, all other things remain unchanged.
- centerus paribus
- The study of how society chooses to use limited resources to produce and consume output.
- economics
- ____ economics is the study of what ought to be.
- normative
- Condition that requires that choices must be made about resource allocation.
- scarcity
- A simplified description of reality.
- model