Chapter 1 Flashcards
———— forces us to make choices
Scarcity
One day, Kiera wakes up and in frustration yells, “Decisions, decisions! Why do I have to make decisions about everything?” Kieras frustrations stem from the fact that:
Like all economic agents, she faces constraints and cannot have everything she wants
Sabrina and Hayley are roommates. Sabrina hates to clean the bathroom. Hayley will agree to clean the bathroom only if Sabrina vacuums the living room. Which economic concept does this statement BEST represent?
There are gains from trade
If a market is in equilibrium:
No individual will be better off doing something different
Your neighbor is planting her garden one afternoon when she stops to have a beer. She drinks one glass and is now deciding whether to have a second glass. This is an example of ———- analysis.
Marginal
When markets dont achieve efficiency
The government may intervene to improve society’s welfare
Which question would not involve marginal analysis:
Should I attend the Lakers Game?
The environmental protection agency regulates, how much pollution a factory can imagine. Which economic principle does this statement best represent?
When Marcus don’t achieve efficiency, government intervention can improve society’s welfare
New Subway location has offered a prize a free meal each week for a year to its first 100 customers on opening day. Isabella camped out for 48 hours before opening to be one of the first 100 customers and successfully obtained the price. The cost is a bottle of obtaining the free meal week for a year price was:
Whatever else she would have done with the 48 hours
A dozen friends get together for a bachelorette party to celebrate an upcoming wedding. If Caicos served and cut into 12 pieces of the same size and each of the 12 attendees gets a slice of the cake distribution is:
Equitable
Samsung finds it difficult to hire enough skilled software engineers to program the popular galaxy cell phone which economic concept does the statement best represents
Scarcity
If Isabella drives to Kansas City, 120 miles from Manhattan, Kansas to do her back to school shopping this will:
Hurt Isabella’s community because Isabella’s spending will be income for people in the larger city 
We have to make choices, because:
The resources available to us are scarce
What best describes efficiency?
1) a situation in which producers make the highest profits possible
2) a situation in which we cannot produce more of one good without producing less of another good.
3) a situation in which we produce the goods and services that people value most highly 
2 and 3
The study of economics arises because of the necessity of choice, and the necessity of choice arises because of the fundamental problem of
Scarcity
Sometimes, the government varies it’s pending, depending on the needs of the country. Which economic principle does the statement best represent?
Government policies can change the spending.
Economists believe that resources should be used as efficiently as possible to:
Achieve societies goals
It is cheaper to buy apples in Washington than in Texas because apples need a lot of water and a specific Climate. Which economic concept does the statement best represent?
Resources should be used as efficiently as possible to achieve societies goals
Which of the following topics would be studied in macroeconomics?
Recessions
Marginal analysis is the study of how individuals decide:
Whether to do a bit more of an activity or a bit less of it
Individuals gains from trade, because:
Of specialization in production
Well, buying refreshments for an upcoming party you notice that a six pack of bud light beer cost six dollars and that a six pack of Miller light beer cost eight dollars. You buy the six pack of Miller light beer although you wonder if maybe 26 packs of bud light beer would have been a better choice to opportunity cost of the Miller light beer is:
2 -6packs of Bud Light beer
———-, that is, decisions by an individual about what to do, and what not to do, is the basis for economics.
Individual choice
When the Chicago city manager received complaints that the municipal courts are not fully accessible to individuals with disabilities, she responds that the $1 million improvement needed to address. The problem will not happen because that money could have been spent building laboratory spaces for people with disabilities. Which economic principle does the statement best represent?
The true cost of something is opportunity cost
If you decide to go to Daytona with your friends, during spring break, you cannot go to London with your brother in the summer. Which economic principles the statement best represent?
The true cost of something is its opportunity cost
Ivanka will make $20 by working an additional hour, but she will lose an hour of studying for her economics test. Ivanka decides to study rather than work. Ivanka’s choice indicates that she:
Values an additional hour, studying more than $20 she would earn working
Specialization and trade lead to:
An increase in total economic output
Susan is attending university and majoring in actuarial mathematics. Susan is there by accumulating:
Human capital
In a society with a Market economy, decisions made by society as a whole emerge from many individual choices. Which of the following exemplifies this phenomenon?
The market demand for oranges.
The volume of work performed by the American workforce
Whether affirm, is profitable enough to remain in business .
A friend comes up to you and offers you a free ticket to the Yankees game that night, and you decide to attend the game. The game takes five hours and cost you $25 for transportation. If you have not attended the game you would have worked your part-time job for $12 an hour. What is the cost you of attending the game?
$85
