Economics

Question 0

What is scarcity?

Answer 0

Having unlimited needs and wants with limited resources

Question 1

What is economics?

Answer 1

Study of how people try to satisfy unlimited needs and wants with limited resources

Question 2

What is the largest economic problem?

Answer 2

Scarcity

Question 3

What is purposeful behavior?

Answer 3

The idea that people make rational economic decisions

Question 4

What is a cost benefit analysis?

Answer 4

If something will not “pay for itself”, don’t buy it

Question 5

What is analyzing the cost benefit of something called? (As an idiom)

Answer 5

Thinking at the margin

Question 6

What means “All other things being equal”?

Answer 6

Ceterus paribus

Question 7

What does ceterus paribus mean?

Answer 7

Taking away factors that affect cost

Question 8

What is another word for oppurtunity cost?

Answer 8

Trade off

Question 9

What is an oppurtunity cost?

Answer 9

The value of an oppurtunity not taken

Question 10

What is a production possibility curve?

Answer 10

An unproportional inverse relationship of 2 goods

Question 11

What is a good used to create things that produce other things?

Answer 11

Capital good

Question 12

What is a consumer good?

Answer 12

A good created using capital resources

Question 13

What are assumptions about the production possibility curve

Answer 13

There are only two goods being compared,
everyone is employed,
resources are fixed,
technology is constant

Question 14

What are’s three coordination tasks of capital and consumer goods

Answer 14

What goods to produce, how many’s to produce, how to distribute the goods

Question 15

What system’s government dictates the three coordination tasks

Answer 15

Command

Question 16

What system does the market determined three tasks instead of the government

Answer 16

Market system

Question 17

Who first described the systems

Answer 17

Adam Smith

Question 18

Who brought about the idea of an invisible hand in the economy

Answer 18

Adam Smith

Question 19

What is it called that that market will guide it self

Answer 19

Invisible hand

Question 20

What is the principle of increasing cost also known as

Answer 20

The law of diminishing return

Question 21

What is the principle of increasing cost

Answer 21

Costs will rise if you add more units of production

Question 22

What economy do we have

Answer 22

mixed economy

Question 23

What is an idiom for maximum efficiency

Answer 23

Producing at the frontier

Question 24

What are pitfalls to sound economic reasoning

Answer 24

Biases,
composition,
post hoc,
correlation does not imply causation

Question 25

What is the fallacy of composition

Answer 25

What is true for part is true for the whole

Question 26

What is the fallacy of post hoc

Answer 26

One thing does not always cause the second thing to happen

Question 27

What is the fallacy of correlation

Answer 27

A certain outcome can be produced by varying factors

Question 28

What are characteristics of a market system

Answer 28

personal motivator is self interest,
a profit motivator is profit margins, the system regulator is the invisible hand or competition, laissez-faire, private ownership

Question 29

What is a word that encompasses all natural resources used in production

Answer 29

Land

Question 30

What is the struggle between consumers and producers called

Answer 30

Competition

Question 31

What are positive statements

Answer 31

Facts

Question 32

What are normative statements

Answer 32

Biased objective statements

Question 33

What is physical capital

Answer 33

Physical objects

Question 34

What is human capital

Answer 34

Training, education