Economics Focused Quizzes (only 1-7 for now) Flashcards
Focused Quizzes 1-42 at the end, only a few for now.
How can a scarce resource be BEST defined?
It exists in a limited quantity.
What topics does Economics study?
It studies how individuals deal with unlimited wants, how to distribute resources, how individuals make choices, and how trade-offs create a diverse economy.
How many items does the average supermarket contain?
31,530
Economics MOST broadly includes anything related to-
decision-making
According to economic assumptions, what is considered scarce?
Knowledge, time, technology, and money.
What types of questions would an economist answer?
Economics studies how individuals make
choices and interact with one another,
particularly in relationship to resources. They would answer questions involving those concepts.
Who wrote “An Inquiry into the Wealth of Nations”?
Adam Smith
How do people make decisions, according to economic assumptions?
They conduct cost-benefit analysis.
Jane has to choose either takeout or instant
noodles for dinner tonight. Which axiom of
economics does her decision illustrate?
trade-offs
What type of cost arises from making decisions?
opportunity cost
What best describes how economists assume people behave?
rationally
Why do individuals make trade-offs?
To allocate limited resources.
What are the basic assumptions of Economics?
Scarcity, rationality, gains from trade, trade-offs, and opportunity costs.
What are the results of specialization?
gains from trade
What factor do rational actors consider LEAST?
They take consideration of their personal beliefs, temporal costs, monetary costs, and societal effects of a decision. The cost to the producer is the last thing they consider.
