Podcast
Questions and Answers
A student will decide to attend class when?
A student will decide to attend class when?
the marginal benefit of attending exceeds the marginal cost of attending
Which of the following is not a key element of the scientific method?
Which of the following is not a key element of the scientific method?
The scientific method is the technique used by economists to determine?
The scientific method is the technique used by economists to determine?
economic principles
Economic resources are the?
Economic resources are the?
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Economists classify resources as?
Economists classify resources as?
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Because economic resources are used to produce goods and services, they are called?
Because economic resources are used to produce goods and services, they are called?
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What is the next-best thing that must be forgone in order to produce one more unit of a given product?
What is the next-best thing that must be forgone in order to produce one more unit of a given product?
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The pleasure, happiness, or satisfaction obtained from consuming a good or service is called?
The pleasure, happiness, or satisfaction obtained from consuming a good or service is called?
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The social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity is?
The social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity is?
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Making choices based on comparing marginal benefits with marginal costs is called?
Making choices based on comparing marginal benefits with marginal costs is called?
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In a market system, scarce goods are allocated through the operation of?
In a market system, scarce goods are allocated through the operation of?
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In a command economy, scarce goods are allocated by?
In a command economy, scarce goods are allocated by?
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Self-interest helps achieve society's economic goals because?
Self-interest helps achieve society's economic goals because?
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There is a wide variety of desired goods and services in a market system because?
There is a wide variety of desired goods and services in a market system because?
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What is produced is ultimately determined by?
What is produced is ultimately determined by?
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The market system depends on private property ownership and the protection of private property rights to?
The market system depends on private property ownership and the protection of private property rights to?
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The phrase 'invisible hand' means that?
The phrase 'invisible hand' means that?
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In the circular flow model, resource markets provide for the exchange of labor and product markets provide for the exchange of?
In the circular flow model, resource markets provide for the exchange of labor and product markets provide for the exchange of?
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In the circular flow model, businesses sell goods and buy labor; households buy goods and?
In the circular flow model, businesses sell goods and buy labor; households buy goods and?
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In the goods and services portion of the circular flow model, there is a flow of?
In the goods and services portion of the circular flow model, there is a flow of?
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Which statement is consistent with the law of demand?
Which statement is consistent with the law of demand?
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Which of the following characteristics lead to a downward-sloping demand curve?
Which of the following characteristics lead to a downward-sloping demand curve?
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How is a market demand curve derived from individual demand curves?
How is a market demand curve derived from individual demand curves?
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Which statement is consistent with the law of supply?
Which statement is consistent with the law of supply?
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Which of the following characteristics leads to an upward-sloping supply curve?
Which of the following characteristics leads to an upward-sloping supply curve?
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How do you derive a market supply curve from individual supply curves?
How do you derive a market supply curve from individual supply curves?
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What are the determinants of supply?
What are the determinants of supply?
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Change in market price results in a ______
Change in market price results in a ______
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Change in factor productivity results in a ______
Change in factor productivity results in a ______
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Change in producer expectations results in a ______
Change in producer expectations results in a ______
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Change in the price of other goods results in a ______
Change in the price of other goods results in a ______
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Change in technology results in a ______
Change in technology results in a ______
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Change in resource prices results in a ______
Change in resource prices results in a ______
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Change in taxes results in a ______
Change in taxes results in a ______
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What are the determinants of demand?
What are the determinants of demand?
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Change in income results in a ______
Change in income results in a ______
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Change in consumer expectations results in a ______
Change in consumer expectations results in a ______
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Change in the price of a related good results in a ______
Change in the price of a related good results in a ______
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Change in the price of an unrelated good results in a ______
Change in the price of an unrelated good results in a ______
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Change in preferences for this good results in a ______
Change in preferences for this good results in a ______
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The supply of cattle hides will?
The supply of cattle hides will?
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Hide prices will?
Hide prices will?
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The supply of leather goods will?
The supply of leather goods will?
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The price of leather goods will?
The price of leather goods will?
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What are running shoes considered?
What are running shoes considered?
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What are cotton fibers considered?
What are cotton fibers considered?
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What are watches considered?
What are watches considered?
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What are coal considered?
What are coal considered?
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What is sunscreen lotion considered?
What is sunscreen lotion considered?
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What is lumber considered?
What is lumber considered?
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Why do economists include only final goods and services when measuring GDP for a particular year?
Why do economists include only final goods and services when measuring GDP for a particular year?
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Gross domestic product does not include the value of stocks and bonds bought and sold because these sales and purchases are not?
Gross domestic product does not include the value of stocks and bonds bought and sold because these sales and purchases are not?
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When measuring GDP for a particular year, why do economists exclude the value of used furniture bought and sold?
When measuring GDP for a particular year, why do economists exclude the value of used furniture bought and sold?
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Why is an economy's output, in essence, also equal to its income?
Why is an economy's output, in essence, also equal to its income?
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Why are changes in inventories included as part of investment spending?
Why are changes in inventories included as part of investment spending?
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If inventories declined by $1 billion during 2014, then $1 billion would be?
If inventories declined by $1 billion during 2014, then $1 billion would be?
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Which of the following statements is true?
Which of the following statements is true?
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Study Notes
Key Economic Concepts
- Decision-making in Class Attendance: Students attend class when the marginal benefit of attendance surpasses its marginal cost.
- Scientific Method: Economists utilize this method to establish economic principles, omitting "Designing Data" as a key element.
- Economic Resources: Classified as natural, human, and manufactured inputs essential for producing goods and services.
Factors of Production
- Resource Classification: Includes labor, land, real capital, and entrepreneurship, labeled collectively as factors of production or inputs.
- Opportunity Cost: The next-best alternative forfeited to produce more of a good; illustrated by examples like selling personal items to cover expenses.
Utility and Economics
- Utility: Refers to the satisfaction gained from consuming goods or services.
- Economics Defined: The social science focused on optimal decision-making under scarcity conditions.
Analyzing Choices
- Marginal Analysis: Involves comparing marginal benefits with marginal costs to make informed choices.
Market Systems
- Resource Allocation in Markets: Scarce goods distributed through prices formed by consumer and producer self-interest.
- Command vs. Market Economy: In a command economy, allocation is managed by a government planning board, contrasting with market systems driven by consumer demand.
Consumer Choices
- Determination of Production: Ultimately driven by consumer preferences; if products aren’t desired, consumers won’t purchase.
Property Rights and Market Functioning
- Private Property Importance: Ownership and protection of property rights incentivize maintenance and orderly ownership transfers.
Invisible Hand Concept
- Market Prices: Act as signals to consumers about desired goods while guiding producers on what to manufacture, embodying the “invisible hand” principle.
Circular Flow Model
- Resource and Product Markets: Resource markets allow labor exchange, while product markets facilitate the exchange of goods and services.
- Household and Business Dynamics: Businesses sell goods and procure labor; households purchase goods and provide labor.
Demand and Supply Laws
- Law of Demand: A decrease in market price typically leads to a higher quantity demanded.
- Law of Supply: An increase in market price generally results in an increased quantity supplied.
Demand Characteristics
- Downward-Sloping Demand Curve: Influenced by diminishing marginal utility and increased purchasing power as prices drop.
- Market Demand Curve: Formed by aggregating individual demands at various prices.
Supply Determinants
- Determinants of Supply: Include prices of related goods, technology, resource prices, and number of producers.
- Shifts and Movements: Changes in factors like productivity or expectations shift the supply curve, whereas price changes result in movements along the curve.
Demand Determinants
- Determinants of Demand: Consist of income, related goods' prices, consumer preferences, and the number of consumers.
Goods Classification
- Final vs. Intermediate Goods: Economists differentiate between these to prevent double counting in GDP measurements. Final goods are sold to end-users, while intermediate goods are used in production.
GDP Measurement
- Exclusions in GDP Calculation: Used goods, stocks, and bonds are omitted to avoid duplicating value that has been previously counted.
- Inventory Changes: Accounted as investments; unsold inventory is included as business investment.
Investment and Economic Health
- Private Domestic Investment: Gross private domestic investment minus depreciation equates to net private domestic investment, indicating economic health.
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Description
Test your knowledge on essential economics concepts with these flashcards. This quiz covers key terms such as marginal benefit, scientific method elements, and economic principles. Perfect for preparing for your Economics Exam 1.
