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

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

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

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

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

A  economic growth

B  scarce economic resources

C  insatiable wants

D  unlimited economic resources

A  desire

B  normal

C  expectation

D  budget

A  few unsatisfied wants

B  extremely limited desires

C  virtually unlimited income

D  virtually unlimited wants

A  Spending

B  Income

C  Taxes

D  Transfers

A  the utility problem

B  ceteris paribus

C  the economizing problem

D  a hypothesis

A  True

B  False

A  by examining only marginal benefits

B  when the marginal benefit is greater than the marginal cost

C  by examining only marginal costs

D  when opportunity costs are greater than marginal benefits

A  encourages; scientific; actual

B  avoids; normative; actual

C  encourages; normative; potential

D  avoids; scientific; actual

E  encourages; scientific; potential

A  Positive economics

B  Normative economics

C  Macroeconomics

D  Microeconomics

A  Microeconomics

B  Positive economics

C  Negative 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  The available supply of each good considered

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

A  utility

B  necessity

C  margin

D  accessibility

A  Tangible

B  Scarce

C  Physical

D  Insatiable

A  Microeconomics

B  Macroeconomics

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 level of public debt and Unemployment and inflation rates

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

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

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

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  when the marginal benefit is greater than the marginal cost

B  by examining only marginal benefits

C  when opportunity costs are greater than marginal benefits

D  by examining only marginal costs

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

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

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

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

A  Deflation

B  Poverty and unequal distribution of wealth

C  The production of unlimited goods and services

D  Fewer options that require choices