15 Questions
What does economics study?
The choices people make to attain their goals with limited resources
Which term refers to a situation in which unlimited wants exceed limited resources?
Scarcity
What are economic models used for?
To analyze real-world economic situations
Where are most iPhones assembled?
China
Why do people make choices according to the text?
Because they live in a world of scarcity
What does it mean when economists assume that people are rational?
People weigh the benefits and costs of each action to make the best decision possible.
What was the initial location of Apple's computer manufacturing in the 1970s and 80s?
United States
What do economists generally assume about people's response to economic incentives?
As incentives change, people's actions also change.
In what way did the introduction of DNA submission requirement for convicted felons demonstrate people's response to economic incentives?
It reduced repeat convictions by serious violent offenders.
What is the potential effect of a Congressional bill proposing to tax firms an amount equal to the government assistance received by their workers?
Firms may increase wages to avoid the tax.
What is a key characteristic of a market according to the text?
A market is a group of buyers and sellers of a good or service.
Why do firms engage in international trade according to the text?
To benefit from selling goods and services in foreign markets.
What does it mean when economists say optimal decisions are made at the margin?
Decisions should be made by comparing additional benefits and costs.
What is a characteristic of economic agents interacting with each other in markets?
Economic agents interact with each other in buying and selling goods and services.
Why do some firms keep their workers' wages low according to the text?
To ensure that their workers remain eligible for government assistance.
Test your knowledge of key economic ideas, the economic problem, economic models, microeconomics, macroeconomics, economic skills, and important economic terms from chapter 1 of the Economics Eighth Edition. This quiz also covers the use of graphs and formulas included in the appendix.
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