1st Semester Final - True/False Flashcards
Positive Economics refers to making value judgments about existing or proposed economic policies.
False
Normative Economics observes economic choices and predicts economic events.
False
Menger proposed that an individual’s decisions are based on personal utility.
True
Economics is considered science.
True
A line graph provides more data than a tabular model.
True
On a PPC, the point on the curve represent inefficient the production.
False
Financial capital is the tool that business firms use to produce goods and services.
False
Entrepreneurship is the most important factor of production.
True
Transfer payments involve the government.
True
If the government receives less in taxes than it is paying out, it is operating under a budget surplus.
False
Dissaving is any time households withdraw money from an account over borrow it.
True
Crowding out has nothing to do with government budget deficits.
False
A financial market is the collection of a nation’s financial institutions.
True
Inferior Goods increase in sales as consume income increases.
False
When a demand curve stays the same, economists say that the product is experiencing a change in demand.
False
Whenever a change in price causes a change in the number of items demanded, a change in quantity demanded has occured.
True
US currency is the currently based on gold and silver.
False
According to the Wolrd Factbook, the USA now has the 3rd largest GDP )gross domestic product) in the world.
True
The principle of Diminishing Marginal Utility states that people tend to receive less and less additional satisfaction from any good or service as they recieve more and more of it during a specific period of time.
True
Complementary goods work best when separated.
False
China has a the largest GDP in the world.
True
The average American has no idea how bad our debt situation is.
True
A shift to the right on the supply schedule generally means that a decrease in supply has occured.
False
When a supply schedule is plugged on a graph, it is called a supply curve.
True
Supply is a the amount of goods and services business firms are willing and able to prodiuve at differently price
True
The point at which buyers and sellers disagree is called the Market Equilibrium Point.
False
A surplus is an excess of unsold products.
True
Opportunity benefit is the regret you feel over a choice you made.
False
