Economics Midterm Quizizz

A systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.

• rational decision-making
• marginal cost
• marginal benefit
• marginal analysis
• efficient points

A rational decision maker:

• ignores marginal changes and focuses instead on "the big picture".

• ignores the likely effects of government policies when he or she makes choices.

• takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.

• takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.

Being an expert in one job, product, or service is called ___________________.

• economic interdependence

• economic specialization

• opportunity cost

• scarcity

Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.

• subsistence

• specialization

• scarcity

• bartering

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs
• A limited amount of resources to meet unlimited wants and needs.
• When people use time and energy to create events
• a city where individuals commit themselves to unlimited wants and needs

The idea that resources are limited

• scarcity

• supply

• demand

• inflation

• an increase in the price of a complementary good.

• a fall in income for most buyers.

• an increase in the price of a close substitute

• an increase in wages for workers who produce the good.

Goods and services that are provided by the govt, paid for by taxes, are low to no cost to use, and to benefit all people are called:

• Private property

• Businesses

• Public goods

What are governments MOST LIKELY attempting to do when they increase unemployment benefits, implement more welfare programs, and rearrange tax brackets?

• resolve market failures

• redistribute income

• invest in technology

• protect property rights

What do points inside the PPF indicate?

• The combination of goods that employ goods efficiently
• The combination of goods that employ resources fully
• The combination of goods that do not employ resources fully