Economics test 1

Question 1

are man made suppliers are not willing to make the goods available for this amount of money

Answer 1

shortage

Question 2

At zero price,there is not enough money for everyone to have all they want.

Answer 2

scarcity

Question 3

is the most desirable alternative we don’t choose.

People respond to incentives in predictable ways

Answer 3

opportunity cost

Question 4

what closely relates to opportunity cost

Answer 4

tradeoff

Question 5

something you have to have to survive

Answer 5

need

Question 6

something you would like to have, but do not necessarily NEED to survive.

Answer 6

want

Question 7

They seek by their choices to obtain the best possible combination of costs and benefits

Answer 7

people choose

Question 8

In any decision, there is a cost. The opportunity cost is he most desirable alternative we don’t choose.

Answer 8

All choice’s involve cost

Question 9

People can be expected to persue rewards. If there is a two for one sale more people will come to the store.

Answer 9

People respond to incentives in predictable ways

Question 10

Economic behavior occurs in a climate of rules, formal and informal. The “rules of the game” influence the choices people make in particular cases. Rules often act as incentives. Tax laws, for example influence people’s behavior

Answer 10

People create economic systems that influence individual choices and incentives

Question 11

People create economic systems that influence individual choices and incentives

Answer 11

People gain when they trade voluntarily

Question 12

last principle

Answer 12

Peoples choices have consequences that lie in the future

Question 13

is a study of men as they live and move and think in the ordinary business of life

Answer 13

economics

Question 14

Determining if the additional (marginal) benefits of an activity are valuable enough to risk the additional (marginal) cost of that activity
Unitary concern-cost per additional unit of change
Firms and individuals will use this strategy to maximize profits

Answer 14

marginal analysis

Question 15

what causes shifts in PPF curve?

Answer 15

innovations

Question 16

foundation of economic goals and values

Answer 16

Economic efficiency 
Economic freedom
Economic security
Economic equity
Economic growth

Question 17

Business man or woman who creates a business, and their own product, and creates this business from the ground up with an original idea.

Answer 17

entrepreneur

Question 18

survival, barter and trade, no competition, low rate of unemployment

Answer 18

traditional economy

Question 19

any arrangement that allows buyers to exchange things

Answer 19

market