AMU ECON 201 Week 1 Quiz - Answered correctly Summer 2025.

AMU ECON 201 Week 1 Quiz_2025. The branch of economics that examines the impact of choices on aggregates in the economy is: microeconomics. When we are forced to make choices we are facing the concept of: the margin. An economic system is the set of rules that define and . resources; prices In a market capitalist economy: factors of production are owned by the government but decisions about their use are made privately. private ownership exists but decisions about resource allocation are usually made centrally by the government. The branch of economics that examines the choices of consumers and firms is: positive economics. Scarcity in economics means: the wants of people are limited. there must be poor people in rich countries. economists are clearly not doing their jobs. The basic concern of economics is: to use unlimited resources to produce goods and services to satisfy limited wants. Whenever a choice is made: the value of all the other choices that could have been made is called opportunity cost. Economics is different from other social sciences because it gives special emphasis to the study of ; it is similar to other social sciences because they are all concerned with the study of . social behavior; scarcity (Exhibit: Production Possibilities Curve-Military and Civilian Goods) A movement from point G to H on Curve 1 would: indicate that, in this economy, there is no scarcity. require giving up civilian goods to get more military goods. require greater efficiency in the production of civilian goods. (Exhibit: Production Possibilities Curve-Military and Civilian Goods) If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that: (Exhibit: Production Possibilities Curve-Military and Civilian Goods) If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that: the economy is maximizing its economic objectives. (Exhibit: Production Possibilities Curve-Military and Civilian Goods) If the economy is represented by Curve 1, then: point G is superior to point H. point H is superior to point G. factors of production are not being used efficiently. (Exhibit: Production Possibilities Schedule) If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is units of consumer goods per period. 8 14 (Exhibit: Production Possibilities Schedule) If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is units of consumer goods per period. 8 14 (Exhibit: Production Possibilities Schedule) If an economy is producing at alternative W, the opportunity cost to it of producing at X is unit(s) of consumer goods per period. 18 (Exhibit: Production Possibilities Schedule) A move from alternative Y to alternative X would: increase potential growth. result in greater underemployment.