Term
| What factors require individuals, societies, and nations to make choices? |
|
Definition
| Unlimited wants but limited or scarce resources |
|
|
Term
| How do individuals, societies, and nations respond when faced with unlimited wants but limited or scarce resources? |
|
Definition
| By allocating the scarce resources and making choices.) |
|
|
Term
| In which category of basic economic resources are any and all natural resources included? |
|
Definition
|
|
Term
| How is the availability of land as an economic resource described? |
|
Definition
|
|
Term
| In which category of basic economic resources are machines, buildings, tools, and knowledge included? |
|
Definition
|
|
Term
| As a component of capital, what does human capital refer to? |
|
Definition
| Knowledge and skills obtained from education, training, and apprenticeship |
|
|
Term
| What is the effect of scarcity of resources on the availability of goods and services? |
|
Definition
| Scarcity of goods and services |
|
|
Term
| Why are not unlimited amounts of goods and services available? |
|
Definition
| Because of the scarcity of resources necessary to produce them |
|
|
Term
| Between microeconomics and macroeconomics, which one includes the study of the behavior of individual businesses |
|
Definition
|
|
Term
| Between microeconomics and macroeconomics, which one includes the study of the behavior of individual persons? |
|
Definition
|
|
Term
| Which decision making or behavioral approach assumes that people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile? |
|
Definition
|
|
Term
| Which two things would an individual compare if the person is using rational decision making to decide if he/she should attend college full time? |
|
Definition
| Costs and benefits of a college degree |
|
|
Term
| Which decision making approach are people using when they compare the additional costs and additional benefits of various activities before they make a decision? |
|
Definition
|
|
Term
| Which two things would an individual making marginal decision compare? |
|
Definition
| Additional costs and additional benefits of a decision. |
|
|
Term
| Upon graduating from high school, Stewart has a choice of working full-time or attending college full time. College tuition and books cost $10,000 annually. If he went to college, he would have to live near the college where the average monthly rent would be $700. If he worked, he could make $30,000 annually and would live in a less expensive area where the average monthly rent would be $500. What would be Stewart’s opportunity cost of attending college? |
|
Definition
|
|
Term
| Mary is considering a choice between moving to New York City or continuing to live in Princeton, New Jersey. If she moved to New York City, the salary from her new job would be $190,000. Her rent for an acceptable apartment would be $6,000 per month and her apartment rental insurance premium would be $500 per month. At Princeton, she is making $150,000 from her job. Her apartment rent is $2,000 per month and her apartment rental insurance premium is $200 per month. What would be Mary’s opportunity cost of moving to New York? |
|
Definition
|
|
Term
| For someone who enjoys skiing, what will be the opportunity cost of visiting Hawaii on a heavily snowy winter versus a very mild winter? |
|
Definition
| It will be greater on a snowy winter |
|
|
Term
| For someone who enjoys ocean surfing, what will be the opportunity cost of visiting Alaska during peak summer months? |
|
Definition
|
|
Term
| On a given day, Mary can type 100 pages or draw 25 charts. What is the opportunity cost per chart for Mary? |
|
Definition
|
|
Term
| On a given month, VCU admissions office can process 4,000 applications or make 1,000 recruitment visits to high schools. What is the opportunity cost per recruitment visit for the admissions office? |
|
Definition
| 4 admissions applications not processed |
|
|
Term
| How is productivity affected when individuals are assigned to tasks based on their strengths and abilities? |
|
Definition
|
|
Term
| What is the process of assigning tasks according to individual strengths and abilities to increase productivity called? |
|
Definition
|
|
Term
| If an engineering student is applying the economic concept of specialization, how would he/she design his/her program of study? |
|
Definition
| Choose one of the specialty areas to focus on |
|
|
Term
| When individuals and organizations focus on the limited range of tasks they perform best, which economic concept they are implementing? |
|
Definition
|
|
Term
| If a team of college students practices the economic concept of division of labor when working jointly on a research paper, how would they handle their work on the paper? |
|
Definition
| Divide different sections of the paper among team members |
|
|
Term
| If the production of a good or service is divided into several separate tasks, each performed by one person, which economic concept is being followed? |
|
Definition
|
|
Term
| When there is inefficiency or unemployment of resources or both, where are the points representing combinations of outputs located relative to the PPF? |
|
Definition
|
|
Term
| Regarding the utilization of available resources, what do points inside the PPF indicate? |
|
Definition
| Unemployment, underemployment, or waste |
|
|
Term
| If combinations of outputs are currently unattainable, where are the points representing those combinations located relative to the PPF? |
|
Definition
|
|
Term
| Regarding the availability of resources, what do points outside the PPF indicate? |
|
Definition
| Insufficiency or unavailability of resources |
|
|
Term
| What would be the shape of the PPF if resources were equally suitable for the production of alternative goods? |
|
Definition
|
|
Term
| If the PPF is a straight line, what happens to the opportunity cost of a good as its production increases? |
|
Definition
|
|
Term
| Between good A and good B, if the opportunity cost of good B increases as its production increases, what does it imply regarding the suitability of resources? |
|
Definition
| Resources are not equally suitable for the production of both good A and good B.) |
|
|
Term
| If resources are not equally suitable for the production of both good A and good B, what would happen to the amount of good B given up per unit of good A as the production of good A is increased? |
|
Definition
|
|
Term
| How does an improvement in technology affect the PPF? |
|
Definition
|
|
Term
| What would cause the PPF to shift outward? |
|
Definition
| Increase in the availability of resources, improvement in technology, or both. |
|
|
Term
| What happens to an economy’s PPF if there is economic growth? |
|
Definition
|
|
Term
| What happens to an economy if more resources, better technology, or both become available? |
|
Definition
| It experiences economic growth |
|
|
Term
| In which type of economy, decision making is typically decentralized? |
|
Definition
|
|
Term
| In which type of economy, decision making is typically centralized? |
|
Definition
|
|
Term
| Based on the law of demand, what would cause a decrease in buyers’ real income or purchasing power and in the amount purchased? |
|
Definition
| An increase in the price of a good |
|
|
Term
| Based on the law of demand, what would an increase in the price of a good do to the amount buyers buy and how? |
|
Definition
| Decrease, in part, by decreasing real income or purchasing power. |
|
|
Term
| As a result of the substitution effect, what would happen to the consumption of grape juice when the price of orange juice increases? |
|
Definition
|
|
Term
| As a result of the substitution effect, what would happen to the consumption of grape juice when the price of orange juice decreases? |
|
Definition
|
|
Term
| What is the term used to describe the impact of a change in the price of a good on the real income or purchasing power of the consumer? |
|
Definition
|
|
Term
| As a result of the income effect, why would consumers decrease the quantity demanded of a good when its price increases? |
|
Definition
| Because their real income or purchasing power decreases |
|
|
Term
| If there is a movement up along the demand curve for cars, what is happening to the price of cars |
|
Definition
|
|
Term
| If there is a movement down along the demand curve for televisions, what is happening to the price of televisions? |
|
Definition
|
|
Term
| What happens to the demand for bottled water if there is a change in the price of bottled water? |
|
Definition
| There will be no change in demand but there will be a change the quantity demanded of bottled water.) |
|
|
Term
| Out of a change in the price of digital cameras, a change in the price of regular cameras, a change in consumer income, a change in consumer tastes for digital cameras, and a change in the number of consumers, which one will not change the demand for digital cameras? |
|
Definition
| A change in the price of digital cameras. |
|
|
Term
| If music CDs are normal goods, how would their demand be impacted if there is an increase in consumer income? |
|
Definition
| Their demand will increase |
|
|
Term
| If cell phones are normal goods, how would their demand be impacted if there is a decrease in consumer income? |
|
Definition
| Their demand will decrease |
|
|
Term
| What would cause the quantity demanded of whisky (a normal good) to increase, other things constant? |
|
Definition
| A decrease in the price of whiskey |
|
|
Term
| What would cause the quantity demanded of beer (a normal good) to decrease, other things constant? |
|
Definition
| An increase in the price of beer |
|
|
Term
| How are cow milk and soya milk related to each other in consumption, if an increase in the price of cow milk increases the demand for soya milk? |
|
Definition
|
|
Term
| How are tea and coffee related to each other in consumption, if a decrease in the price of coffee decreases the demand for tea? |
|
Definition
|
|
Term
| If milk and cereal are complements, what will be the impact of an increase in the price of milk on the demand for cereal? |
|
Definition
| The demand for cereal will decrease. |
|
|
Term
| If bread and butter are complements, what will be the impact of a decrease in the price of bread on the demand for butter? |
|
Definition
| The demand for butter will increase.) |
|
|
Term
| What would likely happen to Joy’s demand for facial cream this week if she expects the price of facial cream to go up 15 percent next week? |
|
Definition
|
|
Term
| What would likely happen to Helen’s demand for canned tuna this week if she expects the price of canned tuna to go down 20 percent next week? |
|
Definition
|
|
Term
| What is the term used to describe the value of the best alternative good given up as a result of choosing a good? |
|
Definition
|
|
Term
| How is the opportunity cost of choosing a particular laptop computer measured? |
|
Definition
| How is the opportunity cost of choosing a particular laptop computer measured? |
|
|
Term
| Which side of the market does demand represent? |
|
Definition
|
|
Term
| Which market participants are represented by the demand side of the market? |
|
Definition
|
|
Term
| What is the economic law which states that as price falls quantity demanded rises and vice versa, holding all else constant? |
|
Definition
|
|
Term
| If quantity demanded goes down as price goes up, holding all else constant, which economic law is being demonstrated? |
|
Definition
|
|
Term
| Out of a decrease in the price of Coke, a decrease in the price of Pepsi, an increase in consumer income, and a decrease in the number of consumers of Coke, which one would not shift the demand for Coke? |
|
Definition
| A decrease in the price of Coke.) |
|
|
Term
| Out of an increase in the price of eye glasses, an increase in the price of contact lenses, a decrease in consumer income, and an increase in the number of consumers of eye glasses, which one would not shift the demand for eye glasses? |
|
Definition
| An increase in the price of eye glasses |
|
|
Term
| What would lead to changes in the quantity demanded of wines? |
|
Definition
| Changes in the price of wines |
|
|
Term
| What would lead to a decrease in the quantity demanded of sugar? |
|
Definition
| An increase in the price of sugar. |
|
|
Term
| . Will a change in the price of related good, consumer income, expected price, consumer taste, or number of consumers lead to a movement along the demand curve? |
|
Definition
| No. However, it will lead to a shift of the demand curve |
|
|
Term
| Out of wheat bread and rye bread, wine and beer, television viewing and movie going, and shoes and shoe strings, which pair of goods are probably complements? |
|
Definition
|
|
Term
| Out of a drop in mortgage rates, an increase in the population of retirees, a drop in the average age of college entrants, and a tax-credit for first-time home buyers, which one can explain an increase in the demand for homes? |
|
Definition
| A tax-credit for first-time home buyers |
|
|
Term
| If hamburgers are inferior goods, how would their demand be impacted if there is an increase in consumer income? |
|
Definition
| Their demand will decrease |
|
|
Term
| If used cars are inferior goods, how would their demand be impacted if there is a decrease in consumer income? |
|
Definition
| Their demand will increase |
|
|
Term
| Out of single family homes, apartments, vacation homes, and resort villas, which one is probably not a normal good? |
|
Definition
|
|
Term
| Out of strawberry yogurt and raspberry yogurt, milk and cereal, bread and butter, and tennis balls and tennis rackets, which pair represents substitute goods? |
|
Definition
| Strawberry yogurt and raspberry yogurt |
|
|
Term
| Out of the price of Florida oranges, consumer income, price of California oranges, and number of consumers, which one is not a demand shifter for Florida oranges? |
|
Definition
| The price of Florida oranges |
|
|
