A.   How people deal with scarcity

B.   Getting rich

C.   Investing

D.   Politics

A.   Ockham's Razor

B.   The law of increasing returns

C.   The law of increasing opportunity costs

D.   The law of diminishing costs

A.   Economic resources are finite.

B.   Economic resources are sometimes misallocated.

C.   Economic resources are not completely adaptable to alternative uses.

D.   Economic resources are perfectly adaptable to alternative uses.

A.   Operate at full employment, allocate its resources efficiently and avoid any waste or misallocation of resources.

B.   avoid any waste or misallocation of resources.

C.   operate at full employment.

D.   allocate its resources efficiently.

A.   starts to bow inward.

B.   becomes straighter.

C.   becomes more curved.

D.   shifts outward.

A.   the fact that the consumer is ruled by the corporation and must play by its set of rules.

B.   the fact that the consumer is king in a market economy, and this dictator will harshly punish any firm that does not quickly respond to his dollar votes.

C.   the fact that corporations impose their own wills on the consumer in determining what will be produced.

D.   the fact that the government is ruled by the consumer, which in turn is ruled by the corporation.

A.   Respond quickly and accurately to the dollar votes of the consumer, allocate and utilize society's scarce resources as efficiently as they can, and continually increase their productivity through technological progress and better uses of society's scarce resources.

B.   respond quickly and accurately to the dollar votes of the consumer.

C.   allocate and utilize society's scarce resources as efficiently as they can.

D.   continually increase their productivity through technological progress and better uses of society's scarce resources.

A.   calculations

B.   models

C.   formulas

D.   biases

A.   The central processing unit is the price mechanism.

B.   It's fuel is money.

C.   The accelerator/decelerator is the level of total spending. 

D.   It's purpose is to produce material wealth.

A.   An increase in the population and technological progress.

B.   An increase in the population, technological progress, and discovery of a new supply of resources.

C.   Discovery of a new supply of resources.

D.   Technological progress

A.   The line on a graph representing the relationship between these two variables would have a negative slope.

B.   This is a normative statement.

C.   This is a positive statement

D.   The relationship between consumer spending and the unemployment rate is negative.

A.   All industries are equally satiated with a particular resource

B.   All industries are willing to pay the same price for all resources

C.   Ditch diggers and doctors receive the same wage.

D.   All industries receive an equal amount of a particular resource.

A.   The firm is able to charge the highest price possible for the product.

B.   Firms use “least cost” method of producing goods and services.

C.   The production of goods and services uses the most “capital intensive” techniques.

D.   The firm uses the most labor intensive method of production.

A.   Everyone receives an income that is equal to the value of their productive contribution to society.

B.   Everyone receives an income that is as high as possible.

C.   The distribution of income is the fairest.

D.   Everyone receives an equal income.

A.   marginal benefits that exceed marginal costs

B.   imperfect information

C.   normative economics

D.   opportunity costs.

A.   wants are scarce relative to resources

B.   the decision to engage in one activity means forgoing some other activity

C.   most decisions do not involve sacrifices or trade-offs

D.   households and businesses make rational decisions

A.   is an example of irrational behavior

B.   contradicts the economic perspective

C.   implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.

D.   implies that electronic media sources are displacing print sources for many consumers

A.   greedy because he is asking for a high wage that some of his neighbors can't afford to pay

B.   rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.

C.   selfish because he is asking for a wage that is higher than others might charge

D.   irrational because some neighbors refused his offer

A.   decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile

B.   must be an avid runner

C.   decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile

D.   was not very tired, so the marginal cost of the extra mile was very low

A.   Principle

B.   Anomaly

C.   Hypothesis

D.   Comparison

A.   the scientific method

B.   policy economics

C.   microeconomics

D.   the economic perspective

A.   include all available information

B.   must use mathematical equations

C.   expect to exactly duplicate the real world

D.   make simplifying assumptions

A.   derived by induction

B.   derived by deduction

C.   subjective and is based on a value judgment

D.   objective and is based on facts

A.   A corporate bond issued by a computer manufacturer

B.   Silicon (sand) used to make computer chips

C.   A computer programmer

D.   A piece of software used by a firm

A.   A machine for detecting earthquakes

B.   A farmer

C.   Natural gas

D.   An oil drilling rig

A.   an economy's capacity to produce increases in proportion to its population size.

B.   if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.

C.   an economy will automatically obtain full employment of its resources.

D.   the production of more of any one good will in time require smaller and smaller sacrifices of other goods.

A.   An upgrading of the quality of a nation's human resources.

B.   The reduction of unemployment.

C.   An increase in the quantity of a society's labor force.

D.   The improvement of a society's technological knowledge.

A.   wants are virtually unlimited.

B.   resources are not generally equally efficient in producing every good.

C.   the originator of the idea drew it this way and modern economists follow this convention.

D.   resources are scarce.

A.   the presence of technological change.

B.   that more output could be produced with the available resources.

C.   that resources are imperfectly substitutable among alternative uses.

D.   the presence of inflationary pressures.

A.   International specialization and trade.

B.   Full production.

C.   Productive efficiency.

D.   Full employment.

A.   property rights.

B.   capital goods.

C.   human capital.

D.   public goods.

A.   consumer sovereignty.

B.   the invisible hand.

C.   market failure.

D.   derived demand.

A.   achieve full employment and price level stability.

B.   promote the equal distribution of real assets and wealth.

C.   reallocate resources from less desired to more desired uses.

D.   contribute to a more equal distribution of income.