Chapter 1 - The General Principles Of Economics

Question 1

THE DESIRES OF CONSUMERS TO OBTAIN AND USE VARIOUS GOODS AND SERVICES THAT GIVE UTILITY

Answer 1

MATERIAL WANTS

Question 2

THE SATISFACTION OR PLEASURE A CONSUMER RECEIVES FROM OBTAINING A GOOD OR SERVICE

Answer 2

UTILITY

Question 3

ALL THE NATURAL, HUMAN AND MANUFACTURED RESOURCES THAT GO INTO THE PRODUCTION OF GOOD AND SERVICES

Answer 3

ECONOMIC RESOURCES

Question 4

CONCERNED EITHER WITH THE ECONOMY AS A WHOLE OR WITH THE BASIC SUBDIVISIONS OR AGGREGATES THAT MAKE UP THE ECONOMY

Answer 4

MACROECONOMICS

Question 5

A COLLECTION OF SPECIFIC ECONOMIC UNITS THAT ARE TREATED AS IF THEY WERE ONE UNIT

Answer 5

AGGREGATE

Question 6

CONCERNED WITH SPECIFIC ECONOMIC UNITS AND A DETAILED CONSIDERATION OF THE BEHAVIOUR OF THESE INDIVIDUAL UNITS

Answer 6

MICROECONOMICS

Question 7

THE RESULT OF USING OR ADMINISTERING SCARCE RESOURCES TO PRODUCE THE MAXIMUM AMOUNT OF DESIRED GOODS AND SERVICES, THEREBY ACHIEVING THE GREATEST POSSIBLE FULFILMENT OF SOCIETY’S WANTS

Answer 7

EFFICIENCY

Question 8

A HAZARD IN ECONOMIC REASONING IN WHICH THE ASSUMPTION IS MADE THAT SIMPLY BECAUSE ONE EVENT PRECEDES ANOTHER, THE FIRST EVENT IS THE CAUSE OF THE SECOND

Answer 8

POST-HOC FALLACY

Question 9

OCCURS WHEN ALL AVAILABLE RESOURCES ARE DEVOTED TO THE COMBINATION OF GOODS MOST WANTED BY SOCIETY

Answer 9

ALLOCATIVE EFFICIENCY

Question 10

OCCURS WHEN GOOD OR SERVICES ARE PRODUCED USING THE LOWEST-COST PRODUCTION METHODS

Answer 10

PRODUCTIVE EFFICIENCY

Question 11

THE AMOUNT OF OTHER PRODUCTS THAT MUST BE FORGONE OR SACRIFICED TO OBTAIN A UNIT OF ANY PRODUCT

Answer 11

OPPORTUNITY COST

Question 12

A MECHANISM OR ARRANGEMENT THAT BRINGS BUYERS AND SELLERS OF A GOOD OR SERVICE IN CONTACT WITH ONE ANOTHER

Answer 12

MARKET