Term
| The economic distinction between changes in demand or supply, and changes in quantity demanded or quantity supplied arises because: |
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Definition
| Changes in relative price are different from variables affecting relative price |
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Term
| Which of the following turns non-economic goods into an economic good? |
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Definition
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Term
| The neoclassical revolution places what two distinctive pillars as their foundation of price theory? |
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Definition
1. Subjectivism in value
2. Marginal quantity analysis |
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Term
| Which of the following was NOT a feature of Classical price theory? |
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Definition
| The value of higher order goods was derived from the value of lower order goods |
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Term
| The "Just Price Doctrine" failed as a theory of price formation because: |
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Definition
| The Scholastics were essentially using normative theoretical analysis to explain market prices when a positive theory was need. |
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Term
| Which statement below is true regarding hotdogs, Ramen Noodles and Bologna? |
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Definition
| Whether these goods are normal or inferior depends on an individuals preferences |
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Term
| Suppose the value scales for Tommy and Chuckie are given below. Chuckie owns 3 apples and Tommy owns 3 oranges. What is underlined what they own. Given this information, which of the following is true? |
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Definition
| The marginal utility of a second exhange for Chuckie is his second orange. |
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Term
| Which of the following is true with respect to the "Law of Demand"? |
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Definition
| An inverse relationship exists between the relative price of the good and the quantity demanded |
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Term
| Which of the following is NOT true with respect to value and economic goods? |
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Definition
| The magnitude of importance of different ends are equal |
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Term
| The classical economics refused to accept subjective value theory because of an inherent "Paradox of Value" for water and diamonds. How did Carl Menger resolve this apparent paradox? |
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Definition
| By explaining that value is attached at the margin |
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Term
| An inferior good is determined as a good in which: |
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Definition
| When a persons income increases, the demand for the good decreases |
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Term
| Which of the following is NOT a basic assumption of economics? |
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Definition
| People make smart choices |
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Term
| Which of the following is NOT true with respect to buyers, sellers, and market prices? |
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Definition
| Consumers valuing the goods the least exclude consumers that desire the good the most |
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Term
| Suppose we have 6 buyers and 7 selledrs in the market for horses. The limits of price formation are between: |
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Definition
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Term
| The most important function of the price system arises from: |
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Definition
| Its ability to transmit scarce information to billions of people. |
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Term
| Which of the following in NOT TRUE with respect to the "structure of production" and factor pricing? |
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Definition
| The value of lower order goods are derived from the corresponding value of higher orders. |
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Term
| The major problem with the "Equality of Exchange" idea was that: |
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Definition
| It could not explain why voluntary trade would ever occur since equal values traded would leave no benefit to the trading agents. |
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Term
| In "Rinkonimics" by Dan Klein, it is asserted that the market much like a roller ring works without the need for guidance because... |
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Definition
| Like roller skaters market participants benefit each other due soley to their own self interest. |
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Term
| Which of the following statements accurately summarizes the theory presented in the article "I, Pencil" by Leonard Reed? |
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Definition
| Without any knowledge of others or of the evolution of the pencil itself, the pencil is created by individuals pursuing their own self interest |
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Term
| According to Peter Boettke in "Morality as Cooperation" markets... |
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Definition
| Always exist regardless of insitutional structures. |
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