You have an economics test tomorrow that you would like to pass. Choose your answers to the questions and click 'Next' to see the next set of questions. When you have completed the practice exam, a green submit button will Lower taxes would result in a 12% increase in spending. Why would you want to build high-rises? Click it to see your results. Which of the following BEST explains sustainable economic growth? Start studying Chapter 1 - Basic Economic Concepts. Scarcity - the fundemental economic problem Cost benefit analysis examines the economic profitability of a change by attempting to quantify the costs and benefits of a project in terms of common units, i.e. 346 times. _____ is the study of business and consumers, while _____ is the study of the economy as a whole. In recent years we have seen a percieved shift of certain items from wants to needs. l%�?�6�������YDۣ. Biological and Biomedical Items that people can use to make or obtain what they need or want, Any commercial activity that seeks profit by providing goods and services to others in exchange for money, Money left over after a business has paid the cost of providing its goods and services, The contest between businesses to win customers. Land is very scarce but materials are not. on your results. back Odetta is a middle-aged woman who is disabled and on a fixed income. Good luck! Which of the following allows us to cope with scarcity of resources? The oxygen that you breathe on land is the same oxygen you breathe while scuba diving in the ocean. back Basic Economic Concepts & Terms Chapter Exam Instructions. People frequently don’t purchase the highest-priced goods because the marginal benefit of … Explain the relationship between scarcity, choices, and trade-offs The entire economic perspective is based on both scarcity and choices. Things you don't have to have to survive, but would like to have, Things that you must have in order to survive, Tasks that businesses perform for consumers. High-rises are less efficient but more valuable. The study of a society's allocation of resources, The study of a government's distribution of resources, The study of buying and selling in the stock market. Which of the following is NOT an inefficiency? SURVEY . All other trademarks and copyrights are the property of their respective owners. Choose your answers to the questions and click 'Next' to see the next set of questions. h�b```�.�[B cb�����̪ � �1�� |>f)��00�{iE�Jj&~���ɵ�'o�{��;����k����ɿ;73�q�3������ h� �� ��LbZ �L$�� ˃���Jd4�y�����? The slope of the production possibilities frontier tells us the opportunity cost of producing one good in terms of the other. ,*s&�($�d�U�̿��}9�g����A�Q �Va`�1Hs00h�,fb`�� ���?l��cx` ��L 30 seconds . ;�'�kO����L Determining that there is a correlation between two events, but not proving how one causes the other. A 2% increase in foreign investment is associated with a 0.5% rise in economic growth. %PDF-1.6 %���� To make the best use of limited resources, you should satisfy your needs first and then your wants. They decide what types of products a business makes. Time. If the opportunity Basic Economic Concepts. A public want everyone in the community wants it and will use it. How should a government behave in a capitalist system? They hire people to work, they make the products we buy, they also discontinue products we are currently using. %%EOF You can skip questions if you would like and come In order to make a profit, they need to be competitive and offer and outstanding product and a low price. How can a normative statement be turned into a positive statement? all aspects are valued in monetary terms. Concepts What Is Economics Supply And Demand Answer … If she builds in an area where she is one of many bakeries, she will be forced to charge lower prices in order to compete with the other bakeries already in the neighborhood. What is the term for determining how resources are used? A teacher claiming credit for the school's athletic performance since his arrival. Which of the following is a normative statement? endstream endobj startxref Scarcity is basically the fact that no one can “have it all;” that is, there are limited goods and services to go around. Flip to your Problem Set * * * C * AP Microeconomics Unit 1: Basic Economic Concepts 1-7. By enacting laws to ensure there is a level playing field, Increased supply, or creating more of the resource to reduce its scarcity, Increased efficiency, or getting more outputs from the same inputs, Decreased demand, or reducing the number of people who want the scarce resource, Decreased utility, or reducing how useful the resource is to prevent it from being consumed. Economic growth that can be sustained with minimally adverse effects on agriculture and livestock, Economic growth that increases at the same rate year over year, Economic growth that can be sustained with minimally adverse effects on the environment, Environmental growth that can be sustained with minimally adverse effects on the global economy. Introduction to Economics: Basic Concepts and Principles As a novice, economics seems to be a dry social science that is laced with diagrams and statistics; a complex branch that deals with rational choices by an individual as well as nations — a branch of study which does not befit isolated study but delving into the depths of other subject areas (such as psychology and world politics). How do resources limit the number of wants people and businesses can satisfy? 620 0 obj <> endobj answer choices . He organizes the day's work accordingly. This is an example of which economic theory? appear. Land is very scarce but air space is not. Information. How do producers try to better understand their consumers? By regulating how many companies can compete in a given sector. Which model is of the most use to a microeconomist? Economists maintain that _____ is central to the actions of individuals, families and companies. Since one child misbehaves, the whole class must misbehave. How does profit and competition motivate a business? Which standard of allocation is relevant to her situation? Earn Transferable Credit & Get your Degree. You are overseeing the construction of buildings on an island. Why is it possible for an economic model to fail? Q. Economic models are accurate and never fail. They want to make a profit so they can take home some extra money. 668 0 obj <>stream Telephone service, to many, is a need. Every day he receives a list from the local government specifying how many toys he must produce, what materials to use, and how much each toy is to be sold for. to them later with the "Go To First Skipped Question" button. Contact us by phone at (877) 266-4919, or by mail at 100 View Street #202, Mountain View, CA 94041. To visualize exact movements of a set of data. endstream endobj 621 0 obj <>/Metadata 44 0 R/Outlines 101 0 R/Pages 618 0 R/StructTreeRoot 106 0 R/Type/Catalog>> endobj 622 0 obj <>/MediaBox[0 0 612 792]/Parent 618 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 623 0 obj <>stream Conflicting definitions of the word comfortable. Basic Economic Concepts The study of economics begins with the study of scarcity—the universal economic problem—and the choices people make to satisfy their needs. Basic Economic Vocabulary ... Answer: (A) the production possibilities frontier for this economy is linear. What is the difference between a public want and a private want? �s�A�55�H�[Q�Ö�% Take-out that is good enough for your friend may not make the impression you want on your date. Complete each of the following tasks with short paragraphs: a. Needs: These are basic requirements for survival like food and water and shelter. 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