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Which term refers to fixed-term savings investments that earn interest?
Which term refers to fixed-term savings investments that earn interest?
What is the primary characteristic of common stock?
What is the primary characteristic of common stock?
Which of the following best defines a 'savings plan'?
Which of the following best defines a 'savings plan'?
What happens to the quantity demanded of a good if its price decreases, according to the law of demand?
What happens to the quantity demanded of a good if its price decreases, according to the law of demand?
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If an individual's income increases and their consumption of a certain good decreases, what type of good is it most likely to be?
If an individual's income increases and their consumption of a certain good decreases, what type of good is it most likely to be?
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What impact does increased consumption have on the marginal utility of a good, according to the law of diminishing marginal utility?
What impact does increased consumption have on the marginal utility of a good, according to the law of diminishing marginal utility?
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What condition defines market equilibrium?
What condition defines market equilibrium?
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Which of these describes the concept of 'market demand'?
Which of these describes the concept of 'market demand'?
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If the price of a product increases, what is the likely impact on the quantity supplied, according to the law of supply?
If the price of a product increases, what is the likely impact on the quantity supplied, according to the law of supply?
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Which market structure is characterized by a single firm dominating the industry?
Which market structure is characterized by a single firm dominating the industry?
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Which of the following is considered a non-price factor that influences demand?
Which of the following is considered a non-price factor that influences demand?
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How does an increase in income typically affect the demand for normal goods?
How does an increase in income typically affect the demand for normal goods?
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Which of the following would likely increase the market supply of a product?
Which of the following would likely increase the market supply of a product?
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What is the definition of marginal utility?
What is the definition of marginal utility?
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An environment supply shock, like a natural disaster, is likely to cause what?
An environment supply shock, like a natural disaster, is likely to cause what?
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Which market structure is characterized by many sellers with differentiated products and relatively easy market entry?
Which market structure is characterized by many sellers with differentiated products and relatively easy market entry?
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Which of the following best describes the core principle of scarcity in economics?
Which of the following best describes the core principle of scarcity in economics?
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A study focusing on the impact of a new tax on consumer spending habits would be categorized under which branch of economics?
A study focusing on the impact of a new tax on consumer spending habits would be categorized under which branch of economics?
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What does the 'ceteris paribus' assumption primarily allow economists to analyze?
What does the 'ceteris paribus' assumption primarily allow economists to analyze?
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If a person chooses to attend a concert instead of working, the economic concept reflecting the value of the income they forgo is known as:
If a person chooses to attend a concert instead of working, the economic concept reflecting the value of the income they forgo is known as:
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Which statement best exemplifies a 'positive' economic approach rather than 'normative'?
Which statement best exemplifies a 'positive' economic approach rather than 'normative'?
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Which of the following is an example of the 'fallacy of composition'?
Which of the following is an example of the 'fallacy of composition'?
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Which of the following best describes the primary difference between saving and investing?
Which of the following best describes the primary difference between saving and investing?
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What is NOT considered one of the fundamental economic questions that every society must address?
What is NOT considered one of the fundamental economic questions that every society must address?
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What is a key disadvantage of saving money, especially when considering the real value of money?
What is a key disadvantage of saving money, especially when considering the real value of money?
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Which scenario illustrates the 'post hoc ergo propter hoc' fallacy?
Which scenario illustrates the 'post hoc ergo propter hoc' fallacy?
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Which of the following best describes the concept of 'capacity' in the context of the 'Five Cs of Credit'?
Which of the following best describes the concept of 'capacity' in the context of the 'Five Cs of Credit'?
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How does the Production Possibilities Curve (PPC) demonstrate the concept of inefficiency?
How does the Production Possibilities Curve (PPC) demonstrate the concept of inefficiency?
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A PPC that is a straight line indicates what?
A PPC that is a straight line indicates what?
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What is the main distinction between common stock and preferred stock?
What is the main distinction between common stock and preferred stock?
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Which of the following should be considered 'good credit'?
Which of the following should be considered 'good credit'?
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What does the ‘law of diminishing returns’ suggest?
What does the ‘law of diminishing returns’ suggest?
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Which economic system is characterized by government control over all economic decisions?
Which economic system is characterized by government control over all economic decisions?
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What does the concept of 'economies of scale' primarily refer to?
What does the concept of 'economies of scale' primarily refer to?
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If a society decides to produce more of one good, what economic principle suggests there will be an increase in opportunity costs?
If a society decides to produce more of one good, what economic principle suggests there will be an increase in opportunity costs?
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Which of the following is considered a 'factor of production'?
Which of the following is considered a 'factor of production'?
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What type of economic study focuses on value-based statements, using terms like 'should' or 'ought'?
What type of economic study focuses on value-based statements, using terms like 'should' or 'ought'?
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What is the 'fallacy of composition'?
What is the 'fallacy of composition'?
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What distinguishes a 'traditional economy'?
What distinguishes a 'traditional economy'?
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What best describes 'opportunity cost' in economics?
What best describes 'opportunity cost' in economics?
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Which of the following best describes a general partnership?
Which of the following best describes a general partnership?
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What is the primary purpose of a non-profit organization?
What is the primary purpose of a non-profit organization?
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Which of these scenarios exemplifies a tertiary industry?
Which of these scenarios exemplifies a tertiary industry?
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What is the difference between gross income and net income?
What is the difference between gross income and net income?
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Which of the following is the best definition of a franchise?
Which of the following is the best definition of a franchise?
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What is considered the 'principal' in the context of finance?
What is considered the 'principal' in the context of finance?
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What is the key distinction between a limited partnership and a general partnership?
What is the key distinction between a limited partnership and a general partnership?
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Which of these best fits the description of a GIC?
Which of these best fits the description of a GIC?
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Study Notes
Economics Unit 1: Introduction to Economics
- Economics is a social science studying human behavior, focusing on decision-making regarding needs and wants.
- The fundamental economic problem is scarcity—limited resources cannot fulfil unlimited human wants and needs.
- Scarcity necessitates choices.
- Microeconomics examines individual economic choices, businesses, and consumers.
- Macroeconomics analyzes the entire economy as a unit.
Economic Thinking and Decision-Making
- Economists consider positive and negative consequences.
- Consequences can be short-term or long-term, immediate or delayed, direct or indirect, intended or unintended, local or global, foreseeable or unforeseeable.
- Rational choice involves weighing costs and benefits.
- Utility is the satisfaction gained from consuming something.
- Positive economics presents factual statements, while normative economics includes value judgments.
- The "ceteris paribus" assumption simplifies analysis by holding other factors constant.
- Common economic fallacies include the fallacy of composition (what's good for one is good for all) and the post hoc fallacy (correlation does not equal causation).
Fundamental Economic Questions
- What to produce?
- How to produce?
- For whom to produce?
- The factors of production include land, labor, capital, and entrepreneurship.
- Tangible resources are physical, while intangible resources are non-physical.
- Efficiency involves getting the job done, while productivity involves getting the job done quickly.
Economic and Political Systems
- Traditional economies rely on customs and traditions.
- Market economies depend on supply and demand.
- Command economies are centrally planned.
- Mixed economies combine elements of market and command economies.
- Economic systems are often analyzed in terms of private property, profit, and competition.
- Political systems (e.g., capitalism, communism, fascism, socialism) reflect different views on the role of government in the economy.
Use of Economic Models
- The circular flow diagram models a simple economy.
- This model illustrates flows of goods, services, and money.
- Production Possibility Curves (PPC) show trade-offs between goods.
- Assumptions underpin PPC analysis.
- PPCs illustrate inefficiency and attainable/unattainable production possibilities.
Business Organizations & Finance
- Income management involves organizing and allocating income and expenses efficiently.
- Savings and investing involve allocation for future needs.
- Key concepts include income, saving, investment, RRSP, RESP, common stock, preferred stock, and bonds.
- Individuals and organizations rely on banking and credit to manage finances.
- The concept of creditworthiness often hinges on the "five Cs" (character, capacity, capital, conditions, and collateral).
Forms of Business Ownership
- Businesses exist in various forms, each with unique characteristics and advantages/disadvantages.
- Expansion strategies include mergers, acquisitions, and corporate alliances.
- Common investment forms such as stocks and bonds are discussed.
Microeconomics
- Demand and quantity demanded are different.
- Demand schedules and curves reflect price sensitivities.
- Non-price determinants of demand (e.g., income, tastes) affect demand curves.
- Supply analysis and schedules reflect price-quantity relationships
- Non-price determinants of supply (e.g., costs, technology) affect supply curves.
- Market equilibrium occurs when demand meets supply.
- Market equilibrium identifies price and quantity.
- Market structures (e.g., perfect competition, monopoly) differ in terms of market characteristics.
General Economic Concepts
- Defining key economic terms, such as opportunity cost, scarcity, and economic efficiency.
- Understanding different economic systems and the role of government.
- Recognizing concepts such as fallacies, productivity, and resource limitations.
Additional Economic Concepts
- Product differentiation and market structures (e.g., monopoly, perfect competition, oligopoly).
- Supply and demand concepts, including the impact of non-price factors on both.
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Description
This quiz covers the foundational concepts of economics, including the definition of economics, the problem of scarcity, and the distinctions between microeconomics and macroeconomics. Additionally, it explores economic thinking and decision-making, analyzing the consequences of choices in economic terms.
