Economics Homework Scheme 2 Pfa
When economists develop models designed to explain the choices
people make, they generally assume that - CORRECT ANSWERS-
People are rational
One of the basic facts of life is that people must make choices as they
try to attain their goals. This unavoidable fact comes from a reality an
economist calls - CORRECT ANSWERS-Scarcity
The Three economic questions that every society must answer are -
CORRECT ANSWERS-What goods will be produced
How will they be produced
Who will receive the goods
Centrally planned economies allocate resources based on decisions
by - CORRECT ANSWERS-Government
Market economies answer these questions through decisions made by
- CORRECT ANSWERS-Households and Firms
Productive Efficiency - CORRECT ANSWERS-A good or service is
produced at the lowest possible costs
Allocative Efficiency - CORRECT ANSWERS-Every good or service is
produced to the point where marginal benefit is equal to marginal cost
Opportunity Cost - CORRECT ANSWERS-The Highest valued
alternative that must be given up to engage in an activity
Which of the following is NOT a step that economist use in developing
a useful economic model? - CORRECT ANSWERS-Make a value
judgment about the merits of the hypothesis
, Any Model is based on making assumptions becuase - CORRECT
ANSWERS-Models have to be simplified to be useful AND we cannot
analyze an economic issue unless we reduce its complexity
On the diagram, the movement along the curve from points A to B to
C illustrates - CORRECT ANSWERS-Increasing marginal opportunity
costs
Absolute Advantage - CORRECT ANSWERS-The ability to produce
more of a good or service than competitors using the same amount of
resources
Comparative Advantage - CORRECT ANSWERS-The ability to
produce a good or service at a lower opportunity cost than other
producers
Is it possible for a country to have a comparative advantage in
producing a good without also having an absolute advantage? A
country without an absolute advantage in producing a good -
CORRECT ANSWERS-Will have a comparative advantage if it has a
lower opportunity cost of producing that good
During the 1928 presidential election campaign, Herbert Hoover, the
republican candidate, argued that the United States should only import
those products that could not be produced here. Do you believe that
this would be a good policy? - CORRECT ANSWERS-This is not a
good policy because it does not necessarily result in countries
producing those goods for which they have a comparative advantage
One of the great benefits of trade is - CORRECT ANSWERS-that it
makes it possible for society to become better off by increasing its
consumption
The primary difference between product markets and factor markets is
that - CORRECT ANSWERS-product markets are markets for goods,
while factor markets for factors of production - labor, capital, natural
resources, and entrepreneurial ability
When economists develop models designed to explain the choices
people make, they generally assume that - CORRECT ANSWERS-
People are rational
One of the basic facts of life is that people must make choices as they
try to attain their goals. This unavoidable fact comes from a reality an
economist calls - CORRECT ANSWERS-Scarcity
The Three economic questions that every society must answer are -
CORRECT ANSWERS-What goods will be produced
How will they be produced
Who will receive the goods
Centrally planned economies allocate resources based on decisions
by - CORRECT ANSWERS-Government
Market economies answer these questions through decisions made by
- CORRECT ANSWERS-Households and Firms
Productive Efficiency - CORRECT ANSWERS-A good or service is
produced at the lowest possible costs
Allocative Efficiency - CORRECT ANSWERS-Every good or service is
produced to the point where marginal benefit is equal to marginal cost
Opportunity Cost - CORRECT ANSWERS-The Highest valued
alternative that must be given up to engage in an activity
Which of the following is NOT a step that economist use in developing
a useful economic model? - CORRECT ANSWERS-Make a value
judgment about the merits of the hypothesis
, Any Model is based on making assumptions becuase - CORRECT
ANSWERS-Models have to be simplified to be useful AND we cannot
analyze an economic issue unless we reduce its complexity
On the diagram, the movement along the curve from points A to B to
C illustrates - CORRECT ANSWERS-Increasing marginal opportunity
costs
Absolute Advantage - CORRECT ANSWERS-The ability to produce
more of a good or service than competitors using the same amount of
resources
Comparative Advantage - CORRECT ANSWERS-The ability to
produce a good or service at a lower opportunity cost than other
producers
Is it possible for a country to have a comparative advantage in
producing a good without also having an absolute advantage? A
country without an absolute advantage in producing a good -
CORRECT ANSWERS-Will have a comparative advantage if it has a
lower opportunity cost of producing that good
During the 1928 presidential election campaign, Herbert Hoover, the
republican candidate, argued that the United States should only import
those products that could not be produced here. Do you believe that
this would be a good policy? - CORRECT ANSWERS-This is not a
good policy because it does not necessarily result in countries
producing those goods for which they have a comparative advantage
One of the great benefits of trade is - CORRECT ANSWERS-that it
makes it possible for society to become better off by increasing its
consumption
The primary difference between product markets and factor markets is
that - CORRECT ANSWERS-product markets are markets for goods,
while factor markets for factors of production - labor, capital, natural
resources, and entrepreneurial ability
