Economics Principles Quiz

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Which of the following is NOT a factor of production according to the text?

Entrepreneurial Ability

Land

Money (correct)

Labor

In economics, what is the difference between positive and normative economics?

Positive economics deals with past economic events, while normative economics deals with future economic events.

Positive economics deals with subjective perspectives of the economy, while normative economics deals with economic facts.

Positive economics deals with economic facts, while normative economics deals with subjective perspectives of the economy. (correct)

Positive economics deals with future economic events, while normative economics deals with past economic events.

What is the budget line in economics?

The line that shows the maximum amount of a good that can be imported/exported with limited trade.

The line that shows the maximum amount of a good that can be produced with limited resources.

The line that shows the maximum amount of a good that can be consumed with limited income. (correct)

The line that shows the maximum amount of a good that can be distributed with limited demand.

What is the fallacy of composition?

The assumption that something is true of the whole just because it is true of some part of the whole Signup and view all the answers

What is the post hoc fallacy?

The incorrect belief that a certain event necessarily caused another event Signup and view all the answers

What is loaded language?

Rhetoric used to influence an audience by using words and phrases with strong connotations Signup and view all the answers

Which of the following is a key assumption in economics?

Economic wants exceed productive capacity Signup and view all the answers

What is the primary concern of economics?

Making optimal choices under conditions of scarcity Signup and view all the answers

What is the difference between microeconomics and macroeconomics?

Microeconomics studies individual markets, while macroeconomics studies the economy as a whole Signup and view all the answers

What is the term used to describe the assumption that all other relevant factors remain unchanged when analyzing the effect of a specific change in a particular variable in economics?

Ceteris paribus Signup and view all the answers

What term is used to describe a statement or proposition that seems self-contradictory or absurd but in reality expresses a possible truth in economics?

Paradox Signup and view all the answers

What is the term used to describe the graphical representation of the relationship between two variables, with one variable on the x-axis and the other variable on the y-axis in economics?

Scatter plot Signup and view all the answers

What is the term used to describe the concept where individuals must choose between different options because resources are limited in economics?

Opportunity cost Signup and view all the answers

What is the term used to describe the set of all possible combinations of goods and services that an individual can purchase with a limited income in economics?

Budget line Signup and view all the answers

What is the term used to describe the concept where individuals must give up some of one good or service to obtain more of another good or service in economics?

Trade-offs Signup and view all the answers

Economics Principles Quiz

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