Economics

Question 1

Define scarce resources.

Answer 1

exists in a limited quantity

Question 2

How many items does the average supermarket contain?

Answer 2

33,000

Question 3

Economics MOST broadly includes anything related to…

Answer 3

decision making

Question 4

Who wrote An Inquiry into the Wealth of Nations?

Answer 4

Adam Smith

Question 5

How do people make decisions, according to economic assumptions?

Answer 5

The conduct cost-benefit analysis.

Question 6

Jane has to choose either takeout or instant noodles for dinner tonight. Which axiom of economics does her decision illustrate?

Answer 6

Trade-offs

Question 7

What type of cost arises from making decisions?

Answer 7

Opportunity cost

Question 8

How do economists assume people behave?

Answer 8

Rationally

Question 9

Why do individuals make trade-offs?

Answer 9

To allocate limited resources

Question 10

What are the results of specialization?

Answer 10

Gains from trade

Question 11

What phenomenon DIRECTLY relates to gains from trade?

Answer 11

Specialization

Question 12

What term refers to economists involving only value-free judgment?

Answer 12

Positive economics

Question 13

On what assumption does cost-benefit analysis rely?

Answer 13

Rationality

Question 14

What basic concept is least relevant to consumers?

Answer 14

Gains from trade

Question 15

How would an economist describe voluntary trade?

Answer 15

It is conducted willingly and benefits those involved.

Question 16

When is a resource considered scarce?

Answer 16

It exists in a limited quantity.

Question 17

How are macroeconomics and microeconomics related?

Answer 17

They share basic assumptions.

Question 18

What definition of efficiency requires minimizing waste?

Answer 18

Pareto efficiency

Question 19

What is the main purpose of economic models?

Answer 19

To identify key assumptions.

Question 20

What variable to economists consider infinite?

Answer 20

Desires