Economics Chapters 1-6 Exam 1 Study
Guide Questions With Correct Answers
Economics - CORRECT ANSWER✔✔-The study of how people allocate
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their limited resources to satisfy their unlimited wants.
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Scarcity - CORRECT ANSWER✔✔-The most basic concept in all of
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economics. Occurs when the ingredients for producing things that
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people desire are insufficient to satisfy all wants. Means we never have
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enough of everything, including time, to satisfy our every desire
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An increase in demand is represented by - CORRECT ANSWER✔✔-a
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rightward shift in the demand curve
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Price Ceiling - CORRECT ANSWER✔✔-Legal maximum price
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Major Economic effect of Medicare subsidies - CORRECT ANSWER✔✔-
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Subsidies lead to a higher quantity of medical services consumed.
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Medicare encourages people to consume medical services that are low
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in per-unit value relative to the cost
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Situation: Family A earns $20,000 and pays $1,500 in income taxes
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, Family B earns $40,000 and pays $3,500 in income taxes. What kind of
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income tax system is this? - CORRECT ANSWER✔✔-Progressive Taxation
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Economists assume that people behave - CORRECT ANSWER✔✔-as if
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motivated by self-interest and respond predictably to opportunities for
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gain.
Macroeconomics is concerned with the study of - CORRECT | | | | | | | | |
ANSWER✔✔-the behavior of the economy as a whole. It deals with | | | | | | | | | | |
economy wide phenomena and aggregates, or totals
| | | | | |
The way economists understand, explain, and predict economic
| | | | | | | |
phenomenon is to - CORRECT ANSWER✔✔-build models (graphs)
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An economic theory is also known as an economic - CORRECT
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ANSWER✔✔-model
Normative economic analysis tends to - CORRECT ANSWER✔✔-involve
| | | | | | | |
value judgments; relate to whether things are good or bad; it is a
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statement of what ought to be. | | | | |
When two variables have a direct relationship, the slope is - CORRECT
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ANSWER✔✔-positive
Guide Questions With Correct Answers
Economics - CORRECT ANSWER✔✔-The study of how people allocate
| | | | | | | | |
their limited resources to satisfy their unlimited wants.
| | | | | | |
Scarcity - CORRECT ANSWER✔✔-The most basic concept in all of
| | | | | | | | | |
economics. Occurs when the ingredients for producing things that
| | | | | | | | |
people desire are insufficient to satisfy all wants. Means we never have
| | | | | | | | | | | |
enough of everything, including time, to satisfy our every desire
| | | | | | | | |
An increase in demand is represented by - CORRECT ANSWER✔✔-a
| | | | | | | | | |
rightward shift in the demand curve
| | | | |
Price Ceiling - CORRECT ANSWER✔✔-Legal maximum price
| | | | | |
Major Economic effect of Medicare subsidies - CORRECT ANSWER✔✔-
| | | | | | | |
Subsidies lead to a higher quantity of medical services consumed.
| | | | | | | | | |
Medicare encourages people to consume medical services that are low
| | | | | | | | | |
in per-unit value relative to the cost
| | | | | |
Situation: Family A earns $20,000 and pays $1,500 in income taxes
| | | | | | | | | |
, Family B earns $40,000 and pays $3,500 in income taxes. What kind of
| | | | | | | | | | | | |
income tax system is this? - CORRECT ANSWER✔✔-Progressive Taxation
| | | | | | | |
Economists assume that people behave - CORRECT ANSWER✔✔-as if
| | | | | | | | |
motivated by self-interest and respond predictably to opportunities for
| | | | | | | | |
gain.
Macroeconomics is concerned with the study of - CORRECT | | | | | | | | |
ANSWER✔✔-the behavior of the economy as a whole. It deals with | | | | | | | | | | |
economy wide phenomena and aggregates, or totals
| | | | | |
The way economists understand, explain, and predict economic
| | | | | | | |
phenomenon is to - CORRECT ANSWER✔✔-build models (graphs)
| | | | | | |
An economic theory is also known as an economic - CORRECT
| | | | | | | | | | |
ANSWER✔✔-model
Normative economic analysis tends to - CORRECT ANSWER✔✔-involve
| | | | | | | |
value judgments; relate to whether things are good or bad; it is a
| | | | | | | | | | | | |
statement of what ought to be. | | | | |
When two variables have a direct relationship, the slope is - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-positive
