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40 Cards in this Set
- Front
- Back
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Economics deals primarily with the concept of:
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scarcity
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Economics is the study of:
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how society manages its scarce resources
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The opportunity cost of an item is:
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what you give up to get that item
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In advance of a particular trip, three seats remain unsold. The bus company could increase profit only if it:
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charges any ticket price above $0
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Economist understand that people respond to:
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incentives
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The principle that "trade makes everyone better off" applies to interactions and trade between:
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-families
-states w/in the US -nations |
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The "invisible hand" directs economic activity through:
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prices
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A shift in the possibilties frontier upwards illustrates:
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economic growth
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Adam Smith argued that in a market system when people act in their own self interest they typically:
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help others even more than when they deliberately try to help others
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The income of a typical worker in a country is most closerly linked to:
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productivity
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Almost all variation in living standards is attributable to differences in countries:
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productivity
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unemployment would cause an economy to:
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produce insides its production possibilities frontier
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T/F
Economics is the study of how fairly goods and services are distributed within society |
False
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T/F
With careful planning we can usually get something that we like without having to give up something else that we like: |
False
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T/F
Tuition is the single largest cost of attending college for most students |
False
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T/F
A market economy cannot produce a socially desirable outcome because individuals are motivated by they own selfish interests: |
False
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The invisible hand explains:
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the trails and error process by which a market reaches equilibrium
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What can change without shifting either demand or supply, ceteris paribus
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price of the good itself
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equilibrium price is achieved through:
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trail and error
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when supply of gasoline decrease the equilibrium price will increase because:
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the shortage exists at the old equilibrium
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Almost all variation in living standards is attributable to differences in countries:
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productivity
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unemployment would cause an economy to:
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produce insides its production possibilities frontier
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T/F
Economics is the study of how fairly goods and services are distributed within society |
False
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T/F
With careful planning we can usually get something that we like without having to give up something else that we like: |
False
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T/F
Tuition is the single largest cost of attending college for most students |
False
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T/F
A market economy cannot produce a socially desirable outcome because individuals are motivated by they own selfish interests: |
False
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The invisible hand explains:
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the trails and error process by which a market reaches equilibrium
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What can change without shifting either demand or supply, ceteris paribus
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price of the good itself
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equilibrium price is achieved through:
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trail and error
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when supply of gasoline decrease the equilibrium price will increase because:
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the shortage exists at the old equilibrium
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t/f
there are never shortages or surpluses when the price in a market is equal to the equlibrium price for the market: |
true
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t/f
a change in price changes the quantity demanded and is represented by a movement along the demand curve |
true
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t/f
The market price equals the equilibrium price if quantity demanded equals quantity supllied at the market price |
true
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If price of basketballs rises then we will see:
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a movement to the left along the demand curve for basketballs
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what would increase the demand for automobiles:
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increase in consumers income
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a change in quantity demanded:
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movement along the demand curve
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If Dell computer and HP computers are subsitutes then an increase in the price of Dell computers will result in:
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and increase in the demand for HP computers
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market demanded is determined by all except:
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number of potential sellers
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when a firm offers a higher salary to an employee of another firm and lures the employee away the firm is:
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using the market mechanism
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a buyer is said to have demand for a good only when
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a buyer is both willing and able to purchase the good at alternative prices
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