ECO 252 SB Assignment | Questions with Verified Answers

ECO 252 SB Assignment | Questions with Verified Answers ______ economic resources means limited goods and services. Scarce Which of the following occur when limited economic resources are used to produce one type of good instead of another? (Check all that apply.) There is a cost borne by society in utilizing these resources in lieu of the next best thing. There is an opportunity cost. Due to scarce resources, society is faced with a(n) ______ cost when choosing to acquire a good by sacrificing the next best thing that could have been acquired with those resources. Opportunity Which best defines utility? The satisfaction or pleasure obtained from consuming a good or service The assumption behind purposeful behavior is that ______. people act in such a way as to rationally pursue their own interests Which of the following is a result of having scarce economic resources for the production of goods and services? Fewer options that require choices When individuals weigh costs and benefits, their economic decisions are ______ and purposeful. Rational The concept at the core of economics that "there is no free lunch" reflects the notion that ______. the scarce resources that are used to produce the so-called "free goods" have alternative uses that are given up When people get satisfaction from charitable giving, they are ______. acting out of rational self-interest The highest-valued alternative that is given up or sacrificed when choosing to produce or consume one good over another is referred to as ______. an opportunity cost In economics, what term is used to mean "extra," "additional," or "a change in"? marginal The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as. (Enter one word in the blank.) Utility Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service ______. when the marginal benefit is greater than the marginal cost When individuals and institutions make decisions with some desired outcome in mind, they are engaging in ______ behavior. Purposeful In a world of scarcity, ______. the decision to obtain the marginal benefit (MB) of a specific option always includes the marginal cost (MC) of forgoing something else The economic assumption that human behavior reflects rational self-interest is predicated on individuals and institutions ______. weighing the costs and benefits of their decisions True or false: To economists, rational self-interest is the same as selfishness. False When a hypothesis formed using the scientific method continues to hold true when tested against facts over time, the hypothesis evolves into a Theory For conducting marginal analysis, individuals compare ______. marginal benefits and marginal costs Suppose you are given a $100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will involve which of the following? A comparison of marginal benefits and marginal costs for each good considered A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions is known as a(n) ______. economic principle Choosing one good or service over another based on a comparison of marginal benefits and marginal costs always involves ______. an opportunity cost Economic principles are generalizations that are ______. expressed as the tendencies of average consumers, workers or firms The scientific method, on which economics relies, consists of several elements, including which of the following? Accepting, rejecting, and adjusting a hypothesis Observing real-world behavior and outcomes and formulating a hypothesis based on said observations Continuing to test the hypothesis against facts Which one of the following best characterizes the "other-things-equal" assumption? All variables except those under immediate consideration are held constant for a particular analysis. Marginal analysis involves the evaluation of which of the following? The additional cost versus the additional benefit of a decision If economists examine the relationship between the price of a good and sales of that good while ignoring other related factors, or assuming those other factors are equal, they are using which of the following? Ceteris paribus In developing economic theories, principles, or models, economists ______. remove clutter and simplify Which of the following are issues most explored in microeconomics? (Check all that apply.) Measuring total revenues of a firm Measuring the price of specific goods The expenditures of a government entity is the discipline that examines the performance and behavior of an economy as a whole. Macroeconomics Economic principles are generalized statements that ______ consumer behavior. look at typical Which concepts or terms refer to the notion that all variables except those under immediate consideration are held constant for a particular analysis? (Check all that apply.) The other-things-equal assumption Ceteris paribus Which of the following are ways of expressing the meaning of ceteris paribus? (Check all that apply.) Assuming other things remain constant Assuming factors other than those being considered in a particular analysis do not change Which discipline studies the decision-making process of customers, workers, households, and business firms on an individual basis rather than as aggregates? Microeconomics Which discipline studies the economy as a whole or its basic subdivisions or aggregates? Macroeconomics In macroeconomics, an aggregate is a collection of which of the following? Specific economic units treated as if they were one unit Why are aggregates used in macroeconomics? To obtain an overview of the economy Which of the following are the focus of positive economics? (Check all that apply.) Cause-and-effect relationships Facts True or false: Positive economics encourages value judgments. False When economists consider the output of all U.S. businesses as a single entity, they are treating them as a(n) ______. Aggregate ______ economics considers the desirability of certain aspects of the economy and underlies expressions of support for particular economic policies. Normative Which of the following are economic themes considered in macroeconomics? The unemployment rate The level of prices in the economy National income Which of the following statements or questions are examples of normative economics? The government should increase the minimum wage. What should the minimum wage be? The government ought to bail out distressed banks. Which of the following is true of positive economics? It avoids value judgments. It tries to establish scientific statements about economic behavior. It focuses on facts and cause-and-effect relationships. Normative, value-based policy questions or statements give rise to ______. controversy or disagreement among economists Positive economics ______ value judgments, tries to establish ______ statements about economic behavior, and deals with ______ economic events. avoids; scientific; actual Your next-door neighbors want to go on a European vacation but cannot afford it, so they decide to visit a local amusement park instead. This is an example of ______. the economizing problem True or false: Everyone except for the super wealthy has a finite, or limited, amount of income. False Normative economics is ______. based on value judgments For better or worse, people have ______. virtually unlimited wants Positive economics is concerned with ______, whereas normative economics deals with _____. what is; what should be In addition to goods, also satisfy our wants. Services The disagreement among economists typically revolves around ______. normative economics As a result of our ______ incomes and ______ wants, it is in our self-interest to economize or pick and choose goods and services that maximize our satisfaction. limited; insatiable