The Economic Way of Thinking

Social science is a subject that studies

• how humans interact with one another

• economics and decision making regarding money, trade, etc.

• politics and its role in shaping society

• all of these

Insatiability refers to

• something that is highly sought after, most everybody wants it.

• never being satisfied and always wanting and needing more.

• something that is hard to get rid of, regardless of the price.

• being content with what one has and not wanting or needing more.

A situation in which there are not enough resources to meet human wants and needs is referred to as

• supply & demand

• normative economics

• scarcity

• positive economics

Which of these best identifies the different between positive economics and normative economics?

• Positive economics describes and explains economics as it is and normative economics describes and explains what economics should be, not what it is

• Normative economics describes and explains economics as it is and positive economics describes and explains what economics should be, not what it is

• There isn't any difference between the two, both terms can be used interchangable to describe and explain economics as it is

• There isn't any difference between the two, both terms can be used interchangable to describe and explain what economics should be

Which of these is an example of opportunity cost?

• Spending money on a college degree in order to obtain a career

• Working overtime to earn more money instead of going to a concert

• Buying a new oven at a restaurant to replace one that was broken

• An employer paying for employees' health insurance

Which of these are all considered needs, things that are necessary for survival?

• Internet connectivity

• food & water

• shelter

• designer, name-brand clothing

Which of these are all considered wants?

• clean water

• Internet access

• designer, name-brand clothing

• a car or truck

A cost that has already been incurred and cannot be recovered is a(n)

• sunk cost

• opportunity cost

• fixed cost

• uncontrollable cost

A type of market in which the government makes economic decisions on behalf of the people is a

• free enterprise market

• command market

• dictatorship

• socialist market

Economics can observed as a whole or on an individual basis. The two terms that describe these observations are

• macroeconomics and individual economics

• government economics and individual economics

• macroeconomics and microeconomics

• microeconomics and macroeconomics