Microeconomics Chapters 1&2

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Posted on

May 24th, 2023

question

Self-sufficient economy

answer

In a blank people consume what they produce.

question

Productivity

answer

Quantity of goods and services produced per unit arch of resources is known ass

question

True

answer

Property rights generally refer to the ability of individuals to protect and control their limited resources in order to undertake economic activity

question

False

answer

All societies face an important trade off between market failure and externalities

question

Positive externality

answer

Less of a good is produced than socially optimal

question

Differences in productivity

answer

Most of the variation in living standards between countries is attributable to

question

Increasing, reduces

answer

In the short run ----- the quantity of money in the economy ---- unemployment.

question

False

answer

Economic growth is represented by backward shifts in the PPF

question

Increasing

answer

When the PPF has a bow shaped opportunity cost is

question

The scientific method and testable hypothesis

answer

As scientists economist use ---- and ---- to understand the world around them

question

Economic growth and efficiency

answer

The PPF illustrates the concept of

question

False

answer

"Lower income taxes generally encourage people to save more." This statement is normative

question

True

answer

A macro economist is most likely to study the impact of increasing money supply on aggregate demand

question

Human capital

answer

Accumulated training education and knowledge refer to

question

Lower

answer

A flatter PPF implies that the opportunity cost is

question

Economics

answer

Art of science and decision making

question

Principle one

answer

(People face trade offs) Society faces trade-off such as efficiency versus equality

question

Principle two

answer

(The cost of something is what you give up to get it). Making decisions require comparing the cost and the benefits of alternative choices.(opportunity cost)

question

Principle three

answer

(Rational people think at the margin) make decisions by evaluating costs and benefits of marginal changes- incremental adjustments to an existing plan. Marginal benefits > marginal cost✅

question

Principle four

answer

(People respond to incentives) rational people respond to incentives

question

Principle five

answer

(Trade can make everyone better off) trade is a voluntary exchange. Rather than being self sufficient people can specialize in producing one good or service and exchange it for goods.

question

Principle six

answer

(Markets are usually a good way to organize economic activity)

question

How individuals make decisions

answer

The first four principles discuss what?

question

Economic interdependence

answer

When countries nations or people rely on each other to acquire goods and services

question

Efficient

answer

Any point on the PPF

question

Inefficient

answer

Any point inside of the frontier

question

Unattainable

answer

Any point outside of the frontier

question

Land labor capital enterprises

answer

Factors of production

question

Assumption of the PPF

answer

1)Two goods and one resource, 2)production takes place over a specific period of time, 3)all resources are fully employed meaning utilize, 4)all resources are fixed over the production period And 5)technology is fixed

question

Scarcity, tradeoffs, opportunity cost, efficiency versus inefficiency of resources, employment versus unemployment of resources and economic growth

answer

Economic concepts PPF

question

Microeconomics

answer

Study of how households and firms make decisions and how they interact in markets

question

Macroeconomic

answer

Study of how economy was phenomenal including inflation unemployment in economic growth

question

Scientists and policy advisor

answer

What two roles do economists play

question

Positive statements

answer

Statement in which they describe the world as it is

question

Normative statements

answer

Statement in which economist attempt to prescribe how the world should be

question

Principle seven

answer

Governments can sometimes improve market outcomes

question

Principle eight

answer

A country standard of living depends on its ability to produce goods and services

question

Principle nine

answer

Prices rise when the government prints too much money

question

Principle ten

answer

Society faces a short run trade-off between inflation and unemployment

1 of 39

question

Self-sufficient economy

answer

In a blank people consume what they produce.

question

Productivity

answer

Quantity of goods and services produced per unit arch of resources is known ass

question

True

answer

Property rights generally refer to the ability of individuals to protect and control their limited resources in order to undertake economic activity

question

False

answer

All societies face an important trade off between market failure and externalities

question

Positive externality

answer

Less of a good is produced than socially optimal

question

Differences in productivity

answer

Most of the variation in living standards between countries is attributable to

question

Increasing, reduces

answer

In the short run ----- the quantity of money in the economy ---- unemployment.

question

False

answer

Economic growth is represented by backward shifts in the PPF

question

Increasing

answer

When the PPF has a bow shaped opportunity cost is

question

The scientific method and testable hypothesis

answer

As scientists economist use ---- and ---- to understand the world around them

question

Economic growth and efficiency

answer

The PPF illustrates the concept of

question

False

answer

"Lower income taxes generally encourage people to save more." This statement is normative

question

True

answer

A macro economist is most likely to study the impact of increasing money supply on aggregate demand

question

Human capital

answer

Accumulated training education and knowledge refer to

question

Lower

answer

A flatter PPF implies that the opportunity cost is

question

Economics

answer

Art of science and decision making

question

Principle one

answer

(People face trade offs) Society faces trade-off such as efficiency versus equality

question

Principle two

answer

(The cost of something is what you give up to get it). Making decisions require comparing the cost and the benefits of alternative choices.(opportunity cost)

question

Principle three

answer

(Rational people think at the margin) make decisions by evaluating costs and benefits of marginal changes- incremental adjustments to an existing plan. Marginal benefits > marginal cost✅

question

Principle four

answer

(People respond to incentives) rational people respond to incentives

question

Principle five

answer

(Trade can make everyone better off) trade is a voluntary exchange. Rather than being self sufficient people can specialize in producing one good or service and exchange it for goods.

question

Principle six

answer

(Markets are usually a good way to organize economic activity)

question

How individuals make decisions

answer

The first four principles discuss what?

question

Economic interdependence

answer

When countries nations or people rely on each other to acquire goods and services

question

Efficient

answer

Any point on the PPF

question

Inefficient

answer

Any point inside of the frontier

question

Unattainable

answer

Any point outside of the frontier

question

Land labor capital enterprises

answer

Factors of production

question

Assumption of the PPF

answer

question

Scarcity, tradeoffs, opportunity cost, efficiency versus inefficiency of resources, employment versus unemployment of resources and economic growth

answer

Economic concepts PPF

question

Microeconomics

answer

Study of how households and firms make decisions and how they interact in markets

question

Macroeconomic

answer

Study of how economy was phenomenal including inflation unemployment in economic growth

question

Scientists and policy advisor

answer

What two roles do economists play

question

Positive statements

answer

Statement in which they describe the world as it is

question

Normative statements

answer

Statement in which economist attempt to prescribe how the world should be

question

Principle seven

answer

Governments can sometimes improve market outcomes

question

Principle eight

answer

A country standard of living depends on its ability to produce goods and services

question

Principle nine

answer

Prices rise when the government prints too much money

question

Principle ten

answer

Society faces a short run trade-off between inflation and unemployment

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