Wk 1 Practice Ch 1, Limits, Alternatives, and Choice

A  A curve showing various combinations of two products a consumer can purchase with a specific amount of income.

B  A curve showing various combinations of three or more products a consumer can purchase at different prices.

C  A curve showing various combinations of two products an economy can produce with a specific amount of resources.

D  A schedule showing various combinations of three or more products a consumer can purchase at different prices.

A  unlimited economic resources

B  insatiable wants

C  scarce economic resources

D  economic growth

A  normal

B  expectation

C  budget

D  desire

A  extremely limited desires

B  few unsatisfied wants

C  virtually unlimited wants

D  virtually unlimited income

A  Transfers

B  Taxes

C  Spending

D  Income

A  ceteris paribus

B  the utility problem

C  a hypothesis

D  the economizing problem

A  True

B  False

A  when the marginal benefit is greater than the marginal cost

B  by examining only marginal benefits

C  by examining only marginal costs

D  when opportunity costs are greater than marginal benefits

A  encourages; scientific; potential

B  encourages; scientific; actual

C  avoids; normative; actual

D  avoids; scientific; actual

E  encourages; normative; potential

A  Microeconomics

B  Macroeconomics

C  Positive economics

D  Normative economics

A  Microeconomics

B  Negative economics

C  Positive economics

D  Macroeconomics

A  An evaluation of the unlimited resources used in the production of each good considered

B  A decision between attainable and unattainable combinations of the goods under consideration

C  A comparison of marginal benefits and marginal costs for each good considered

D  The available supply of each good considered

A  accessibility

B  margin

C  utility

D  necessity

A  Tangible

B  Insatiable

C  Physical

D  Scarce

A  Macroeconomics

B  Microeconomics

A  Measuring the price of specific goods, The level of public debt and Unemployment and inflation rates

B  The level of public debt, The expenditures of a government entity, and Unemployment and inflation rates

C  The expenditures of a government entity, Measuring total revenues of a firm, and Measuring the price of specific goods

D  The level of public debt and Unemployment and inflation rates

A  Assuming factors other than those being considered in a particular analysis do not change. Assuming additional factors, other than those under consideration, are given equal consideration

B  Assuming additional factors, other than those under consideration, play a significant role in analysis. Assuming other things are equal

C  Assuming other things are equal. Assuming factors other than those being considered in a particular analysis do not change

D  Assuming additional factors, other than those under consideration, play a significant role in analysis. Assuming additional factors, other than those under consideration, are given equal consideration

A  by examining only marginal benefits

B  when opportunity costs are greater than marginal benefits

C  when the marginal benefit is greater than the marginal cost

D  by examining only marginal costs

A  The satisfaction or pleasure obtained from consuming a good or service

B  The utilization of economic resources by producers when engaging in production

C  The satisfaction or pleasure obtained from producing a good or service

D  The utilization of economic resources by consumers when engaging in consumption

A  Fewer options that require choices

B  Poverty and unequal distribution of wealth

C  Deflation

D  The production of unlimited goods and services