Chaprwr Summarys

Question 1

Economic reasoning structures all questions in a cost/benefit framework

Answer 1

True

Question 2

Economic forces (scarcity) are always working

Answer 2

Market forces are not always allowed to work

Question 3

Normative economics

Answer 3

Study of what should be

Question 4

Positive economics

Answer 4

Study of what is

Question 5

The art of economics

Answer 5

Relates positive to normative economics

Question 6

The production possibility curve measures:

Answer 6

The max combo of outputs that can be obtained from a given # of inputs

Question 7

Trade does what to the PPC?

Answer 7

Shifts it

Question 8

1. Points inside the PPC?
2. Points on the PPC?
3. Points outside the PPC?

Answer 8

1. Inefficient
2. Efficient
3. Unattainable

Question 9

Globalization is:

Answer 9

The increasing integration of economies, cultures, and institutions across the world

Question 10

Bowed out curved?

Answer 10

Increasing opportunity cost

Question 11

Straight line curve

Answer 11

Constant opportunity cost

Question 12

In the United States who makes the “what, how, and for whom” decisions?

Answer 12

Businesses

Question 13

What are the two roles of the government in the economy?

Answer 13

1. Referee

2. Actor