Final Exam - Assignments Flashcards
In a market system scarce goods are allocated through the operation of
- what must be sacrificed in using a resource for its next best use.
- market prices that are determined by consumers and producers acting in their own self-interest.
Suppose a city block was going to be used for a parking lot. The opportunity cost would be
greater in New York City because the alternative uses of the block are more valuable.
A student will decide to attend class when
the marginal benefit of attending exceeds the marginal cost of attending.
Which of the following best describes the concept of utility and economic behavior?
Satisfaction from consuming goods or services.
Which of the following is not a key element of the scientific method?
Designing data
The scientific method is the technique used by economists to determine
economic principles.
Which of the following represents a positive economic statement?
The unemployment rate is 4.8 percent.
Which of the following represent a normative economic statement?
The government ought to lower taxes so people have more money.
A straight-line budget constraint shows the ___________ associated with obtaining more of either of the two goods.
opportunity cost
The budget line shows the various _________ of two goods that a consumer can purchase with a specific _________
combination, income
Economic resources are the
natural, human, and manufactured inputs used to produce goods and services.
Economists classify resources as
labor, land, real capital, and entrepreneurs.
Because economic resources are used to produce goods and services, they are called
factors of production or inputs
Why is money not considered to be a capital resource in economics?
Money is not considered a capital resource because money is
not productive
Why is entrepreneurial ability distinct from labor even though both are considered as a category of economic resource?
Because entrepreneurial ability is not directly engaged in production.
What are the major functions of the entrepreneur?
- Make routine pricing decisions
- Innovate
- Purchase capital
- Create market demand
- Take risks
- Make decisions
Innovate
Take risks
Make decisions
Specify the typical shapes of marginal-benefit and marginal-cost curves.
The marginal benefit curve is _____sloping.
The marginal cost curve is _____sloping.
downward, upward
With these curves, the optimal allocation of resources to a particular product will occur when ______.
MB = MC
If current output is such that marginal cost exceeds marginal benefit, should more or fewer resources be allocated to this product?
fewer
Indicate whether each of the following statements applies to microeconomics or macroeconomics:
a. The unemployment rate in Canada was 6.8 percent in September 2014
Macroeconomics
Indicate whether each of the following statements applies to microeconomics or macroeconomics:
b. A software firm discharged 15 workers last month and transferred the work to India
Microeconomics
Indicate whether each of the following statements applies to microeconomics or macroeconomics:
c. An unexpected freeze in central Florida reduced the citrus crop production and caused the price of oranges to rise
Microeconomics
Indicate whether each of the following statements applies to microeconomics or macroeconomics:
d. Canadian output, adjusted for inflation, decreased by 1.9 percent in 2013
Macroeconomics
Indicate whether each of the following statements applies to microeconomics or macroeconomics:
e. Scotiabank lowered its interest rate on business loans by one-half of 1 percentage point last week
Microeconomics