Economics Chapter 1 Flashcards

Questions and Answers

The question 'Should we produce LCD televisions or computer monitors?' is an example of a ________ question.

what

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

what

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of ________.

how

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

how Signup and view all the answers

The question 'Should we produce houses using bricks or wood?' is an example of a ________ question.

how Signup and view all the answers

The question 'Should economics majors or sociology majors earn more after they graduate?' is an example of a ________ question.

for whom Signup and view all the answers

If a decision is made and it is the best choice for society, the decision is said to be ________.

made in social interest Signup and view all the answers

Scarcity exists because

Human wants exceed the resources available to satisfy them. Signup and view all the answers

Scarcity

Is the inability to satisfy all our wants. Signup and view all the answers

Scarcity requires that we

Make choices about what goods and services to produce. Signup and view all the answers

Scarcity means that

Wants are greater than what we can produce with our resources. Signup and view all the answers

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

Scarcity. Signup and view all the answers

Which of the following statements best describes the study of economics? Economics studies how

We make choices in the face of scarcity. Signup and view all the answers

Scarcity forces people to

Choose among available alternatives. Signup and view all the answers

Scarcity means we must

Make choices. Signup and view all the answers

What is the reason that all economic issues and problems occur?

Human wants exceed the resources available to satisfy them. Signup and view all the answers

The study of economics is best described as a study of

Coping with scarcity, and choices made as a result of scarcity in a society. Signup and view all the answers

Which of the following best defines economics?

Economics studies how to choose the best alternative when coping with scarcity. Signup and view all the answers

Economics is the social science that studies

How people make choices to cope with scarcity. Signup and view all the answers

Economics is best defined as the social science that studies

The choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. Signup and view all the answers

Microeconomics includes the study of the

Choices made by individuals and businesses. Signup and view all the answers

The primary focus of microeconomics is

To examine the behavior and operation of the individual units or sectors that make up the economy. Signup and view all the answers

Which of the following is a microeconomic issue?

The price of gasoline increases in the United States this year. Signup and view all the answers

Which of the following is a microeconomic issue?

The quantity of wheat grown in the United States increases this year. Signup and view all the answers

Which of the following is a microeconomic topic?

Northwest Airlines analyzes the benefits of adding one more flight to Salt Lake City. Signup and view all the answers

Macroeconomics is the study of

National or global economies. Signup and view all the answers

Which of the following BEST describes macroeconomics?

It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments. Signup and view all the answers

Which of the following is a topic studied in macroeconomics?

The effect on economic growth if the government raises taxes. Signup and view all the answers

Which of the following is a macroeconomic topic?

Why did production and jobs expand slowly in 2011? Signup and view all the answers

Which of the following is a macroeconomic issue?

The number of jobs and production in Zimbabwe increase. Signup and view all the answers

Which of the following is a macroeconomic topic?

China increases interest rates to slow its economic growth. Signup and view all the answers

When you make the decision to spend your time attending class, which economic question are you answering?

What? Signup and view all the answers

Of the three major economic questions, which of the following is the best example of a 'What?' question?

Should we make faster microprocessors or pest-resistant corn? Signup and view all the answers

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

What Signup and view all the answers

When Delta decides to quit flying to Lithuania, it directly answers the ________ question.

What Signup and view all the answers

The question of 'What goods and services get produced?' most closely relates to which of the following issues?

Building a missile defense system, or putting a computer in every elementary school classroom. Signup and view all the answers

When a home builder decides to computerize all of its production schedules, it directly answers the ________ question.

How Signup and view all the answers

When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ________ question.

How Signup and view all the answers

When the power company decides to use manpower to bury its lines, it directly answers the ________ question.

How Signup and view all the answers

The question of 'How are goods and services produced?' most closely addresses which of the following issues?

Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? Signup and view all the answers

Of the three major economic questions, which of the following is the best example of a 'How?' question?

Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines? Signup and view all the answers

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

For whom? Signup and view all the answers

When the federal government decides to pay senators more than it pays soldiers, it answers the ________ question.

For whom Signup and view all the answers

When a third string NFL quarterback earns more than a police officer, society answers the ________ question.

For whom Signup and view all the answers

When unskilled teens earn less than college graduates, society answers the ________ question.

For whom Signup and view all the answers

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that 'everyone, regardless of their ability to pay' is the answer to what microeconomic question?

For whom will health care be produced? Signup and view all the answers

Choices that are best for the individuals that make them are choices in pursuit of

Self-interest. Signup and view all the answers

Self-interest

Reflects choices that are best for the individual who makes them. Signup and view all the answers

Choices that are best for the society as a whole are choices in pursuit of

The social interest. Signup and view all the answers

The characteristic from which all economic problems arise is

Scarcity. Signup and view all the answers

All economic questions and problems arise from

A society’s wants exceeding what its scarce resources can produce. Signup and view all the answers

Scarcity results from the fact that

People's wants exceed the resources available to satisfy them. Signup and view all the answers

To economists, scarcity means that

Unlimited wants cannot be satisfied by the limited resources. Signup and view all the answers

Which of the following statements is true regarding scarcity?

All citizens in a wealthy economy experience scarcity. Signup and view all the answers

People must make choices because

Of scarcity. Signup and view all the answers

Which of the following is a microeconomic issue?

What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favor of non-carbonated drinks? Signup and view all the answers

Microeconomics includes the study of

The choices that individuals and businesses make. Signup and view all the answers

Study Notes

Scarcity and Economics

Scarcity arises when human wants exceed the available resources, necessitating choice.
Economic issues originate from the vastness of human wants contrasted against limited resources.
Scarcity applies universally, affecting both rich and poor individuals.

Fundamental Economic Questions

Three major economic questions are "What to produce?", "How to produce?", and "For whom to produce?".
Choices made in addressing these questions help manage scarcity within societies.
The determination of production methods reflects microeconomic decision-making.

Microeconomics vs. Macroeconomics

Microeconomics studies individual and business choices, focusing on specific market activity.
Macroeconomics examines national and global economies, analyzing overall economic trends and governmental policies.
Microeconomic topics include decisions made by companies and individual consumer behavior.
Macroeconomic issues encompass broader themes like national growth, employment rates, and government spending.

Self-interest drives individual choices that maximize personal benefits.
In contrast, social interest concerns the welfare of society as a whole.
Effective decision-making balances self-interest with the overall benefits to society.

Choices and Opportunity Cost

Every economic choice involves opportunity cost, reflecting the next best alternative sacrificed.
Decisions regarding production involve trade-offs between different goods and services.

Dynamics of Resource Allocation

The allocation of resources determines how effectively a society can meet its needs.
Economic efficiency is achieved by producing goods in a manner that minimizes waste.

Implications of Scarcity

Scarcity necessitates priorities, influencing social and governmental policies.
Choices reflecting society's values often dictate the distribution of goods and services.

Key Takeaways

Economics studies how individuals and societies manage limited resources to address their unlimited wants.
Decision-making processes in economic contexts have far-reaching implications for both individuals and communities.
Understanding the balance between self-interest and social interest is foundational in addressing economic challenges.

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Test your knowledge on the basic concepts of scarcity from Economics Chapter 1. These flashcards will help reinforce your understanding of how human wants exceed the resources available. Challenge yourself with key definitions and explanations.

Economics Chapter 1 Flashcards

Questions and Answers

The question 'Should we produce LCD televisions or computer monitors?' is an example of a ________ question.

When Ferrari decides to produce 1,200 360 Modenas each year, Ferrari is answering the ________ question.

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of ________.

When a landscaping company decides to use drafting software and computers instead of hiring designers to draw design plans by hand, it is answering the ________ question.

The question 'Should we produce houses using bricks or wood?' is an example of a ________ question.

The question 'Should economics majors or sociology majors earn more after they graduate?' is an example of a ________ question.

If a decision is made and it is the best choice for society, the decision is said to be ________.

Scarcity exists because

Scarcity

Scarcity requires that we

Scarcity means that

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

Which of the following statements best describes the study of economics? Economics studies how

Scarcity forces people to

Scarcity means we must

What is the reason that all economic issues and problems occur?

The study of economics is best described as a study of

Which of the following best defines economics?

Economics is the social science that studies

Economics is best defined as the social science that studies

Microeconomics includes the study of the

The primary focus of microeconomics is

Which of the following is a microeconomic issue?

Which of the following is a microeconomic issue?

Which of the following is a microeconomic topic?

Macroeconomics is the study of

Which of the following BEST describes macroeconomics?

Which of the following is a topic studied in macroeconomics?

Which of the following is a macroeconomic topic?

Which of the following is a macroeconomic issue?

Which of the following is a macroeconomic topic?

When you make the decision to spend your time attending class, which economic question are you answering?

Of the three major economic questions, which of the following is the best example of a 'What?' question?

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

When Delta decides to quit flying to Lithuania, it directly answers the ________ question.

The question of 'What goods and services get produced?' most closely relates to which of the following issues?

When a home builder decides to computerize all of its production schedules, it directly answers the ________ question.

When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ________ question.

When the power company decides to use manpower to bury its lines, it directly answers the ________ question.

The question of 'How are goods and services produced?' most closely addresses which of the following issues?

Of the three major economic questions, which of the following is the best example of a 'How?' question?

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

When the federal government decides to pay senators more than it pays soldiers, it answers the ________ question.

When a third string NFL quarterback earns more than a police officer, society answers the ________ question.

When unskilled teens earn less than college graduates, society answers the ________ question.

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that 'everyone, regardless of their ability to pay' is the answer to what microeconomic question?

Choices that are best for the individuals that make them are choices in pursuit of

Self-interest

Choices that are best for the society as a whole are choices in pursuit of

The characteristic from which all economic problems arise is

All economic questions and problems arise from

Scarcity results from the fact that

To economists, scarcity means that

Which of the following statements is true regarding scarcity?

People must make choices because

Which of the following is a microeconomic issue?

Microeconomics includes the study of

Study Notes

Scarcity and Economics

Fundamental Economic Questions

Microeconomics vs. Macroeconomics

Concepts of Self-Interest and Social Interest

Choices and Opportunity Cost

Dynamics of Resource Allocation

Implications of Scarcity

Key Takeaways

Studying That Suits You

Description

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