ABMg 105 Economics: Scarcity, Choice, Opportunity Cost

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What concept in economics involves analyzing the additional or incremental costs or benefits arising from a choice or decision?

Relative price

Marginalism (correct)

Opportunity cost

Scarcity

Which of the following concepts involves what we give up by not making an alternative choice?

Marginalism

Opportunity cost (correct)

Choice

Scarcity

What is the main reason for studying economics, according to the text?

To analyze marginal benefits

To learn a way of thinking (correct)

To learn efficient market strategies

To understand scarcity

In economics, what does 'relative price' refer to?

The price of one item in relation to another Signup and view all the answers

What idea in economics involves selecting one alternative over another?

Choice Signup and view all the answers

What aspect of Economics focuses on the examination of different economic systems to determine their advantages and disadvantages?

Comparative Economic Systems Signup and view all the answers

Which specialized field in Economics emphasizes the study of growth in less developed countries?

International Economics Signup and view all the answers

Which concept in economics focuses on the notion that a rational decision maker considers actions only if the marginal benefit exceeds the marginal cost?

Marginalism Signup and view all the answers

What distinguishes economists who focus on developing new theories from those who test existing theories?

Desire to expand knowledge frontiers Signup and view all the answers

Which field of Economics concerns itself with the relationship between economics and law?

Urban Economics Signup and view all the answers

What type of economists are primarily interested in applying already known theories to public policies?

Economists focusing on theory development Signup and view all the answers

In which field of Economics would you expect to find a detailed examination of the history of economic thought?

Economic History Signup and view all the answers

What is the main reason behind the establishment of the study of economics?

Addressing the issue of resource allocation and distribution Signup and view all the answers

What concept is at the heart of the study of economics?

Scarcity Signup and view all the answers

What is opportunity cost?

The cost of choosing the next best alternative Signup and view all the answers

Why is scarcity considered essential for the study of economics?

It necessitates making choices due to limited resources Signup and view all the answers

What does opportunity cost refer to in economic decision-making?

The foregone value of the best alternative not chosen Signup and view all the answers

How does scarcity relate to the field of economics?

By necessitating choices due to limited resources Signup and view all the answers

What does economic efficiency refer to?

The relationship between scarce factor inputs and outputs of goods and services Signup and view all the answers

How can technological advancement impact the workforce?

Result in the retrenchment or displacement of workers Signup and view all the answers

What is equity in the context discussed in the text?

Justice and fairness Signup and view all the answers

How does being efficient in production impact a company?

Saves time and money, leading to increased output Signup and view all the answers

What does effectiveness mean in economics?

Attainment of goals and objectives Signup and view all the answers

How can economics be a functional tool for other fields?

By providing useful output for consumption Signup and view all the answers

What is the common way of expressing the efficient markets concept?

There's no such thing as a free lunch Signup and view all the answers

What are sunk costs in economics?

Costs that have already been incurred and cannot be avoided Signup and view all the answers

What does Economics seek to understand about society?

Transactions made by the society and its members Signup and view all the answers

What does understanding economics help develop in individuals according to the text?

Wise voting behavior Signup and view all the answers

In an efficient market, what happens to profit opportunities?

They are eliminated almost instantaneously Signup and view all the answers

What is one way Economics seeks to understand global affairs?

By analyzing internal operation and trade policies of countries Signup and view all the answers