Podcast
Questions and Answers
What is the primary focus of economics?
What is the primary focus of economics?
- The study of human behavior over scarce resources (correct)
- The study of physical resources
- The study of historical economic data
- The study of governmental policies
People do not face any trade-offs when making decisions.
People do not face any trade-offs when making decisions.
False (B)
What is the opportunity cost of attending a lecture?
What is the opportunity cost of attending a lecture?
Time, energy, tuition, and potential working hours or enjoyment with others.
The principle that states 'The cost of something is what you give up to get it' is known as the principle of __________.
The principle that states 'The cost of something is what you give up to get it' is known as the principle of __________.
Match the following concepts with their definitions:
Match the following concepts with their definitions:
Which principle states that 'Rational people think at the margin'?
Which principle states that 'Rational people think at the margin'?
An increase in equity always leads to an increase in efficiency.
An increase in equity always leads to an increase in efficiency.
What is the main objective of rational people in economics?
What is the main objective of rational people in economics?
What primarily determines a country's standard of living?
What primarily determines a country's standard of living?
Inflation occurs when there is a decrease in the overall level of prices in the economy.
Inflation occurs when there is a decrease in the overall level of prices in the economy.
What is the term used for the irregular fluctuations in economic activity?
What is the term used for the irregular fluctuations in economic activity?
A country's __________ reflects the quantity of goods and services produced from each hour of a worker's time.
A country's __________ reflects the quantity of goods and services produced from each hour of a worker's time.
Match the following terms with their definitions:
Match the following terms with their definitions:
Which factor may NOT directly affect a country's productivity?
Which factor may NOT directly affect a country's productivity?
Policy advisers focus on normative statements to help improve economic conditions.
Policy advisers focus on normative statements to help improve economic conditions.
What condition must be met for a rational person to make a decision according to the principles discussed?
What condition must be met for a rational person to make a decision according to the principles discussed?
What is the short-run tradeoff that society faces between two economic factors?
What is the short-run tradeoff that society faces between two economic factors?
Trade is designed to benefit only one party involved.
Trade is designed to benefit only one party involved.
What does the 'invisible hand' refer to in economic terms?
What does the 'invisible hand' refer to in economic terms?
The principle that emphasizes that 'markets are usually a good way to organize economic activity' is known as ______.
The principle that emphasizes that 'markets are usually a good way to organize economic activity' is known as ______.
Match the following economic principles with their corresponding descriptions:
Match the following economic principles with their corresponding descriptions:
What is a potential outcome when a market fails to allocate resources efficiently?
What is a potential outcome when a market fails to allocate resources efficiently?
Free markets eliminate the need for government intervention entirely.
Free markets eliminate the need for government intervention entirely.
What role do incentives play in human economic behavior?
What role do incentives play in human economic behavior?
What does the principle of comparative advantage state?
What does the principle of comparative advantage state?
A perfectly competitive market allows buyers and sellers to set the prices directly.
A perfectly competitive market allows buyers and sellers to set the prices directly.
What is the relationship described by the law of demand?
What is the relationship described by the law of demand?
In competitive markets, buyers and sellers are known as ______.
In competitive markets, buyers and sellers are known as ______.
Which of the following factors does NOT shift the demand curve?
Which of the following factors does NOT shift the demand curve?
Match the following concepts with their descriptions:
Match the following concepts with their descriptions:
What is represented by the supply curve?
What is represented by the supply curve?
The equation for Catherine's individual demand curve is Qd = ______.
The equation for Catherine's individual demand curve is Qd = ______.
What occurs when the quantity supplied is greater than the quantity demanded?
What occurs when the quantity supplied is greater than the quantity demanded?
Equilibrium price is the price at which quantity demanded exceeds quantity supplied.
Equilibrium price is the price at which quantity demanded exceeds quantity supplied.
What does elasticity measure in economics?
What does elasticity measure in economics?
When demand is inelastic, total revenue (TR) ___ when price increases.
When demand is inelastic, total revenue (TR) ___ when price increases.
Match the type of elasticity with its description:
Match the type of elasticity with its description:
If income elasticity of demand is less than 0, the good is classified as which type?
If income elasticity of demand is less than 0, the good is classified as which type?
A perfectly elastic demand means that consumers will purchase any quantity at any price.
A perfectly elastic demand means that consumers will purchase any quantity at any price.
What is the formula for total revenue?
What is the formula for total revenue?
