Intro to Economics

Economics is the study of ...

(choose best answer)

• People allocating limited resources to satisfy unlimited wants

• People controlling money

• Government deciding what to produce

• Consumers deciding what to buy

The limited nature of resources is known as ...

• Allocation

• Scarcity

• Government assets

• Basic economic questions

Microeconomics involves...

• Only households selling goods

• The broader economy

• Individuals, households and businesses

• Inflation, growth, employment, interest

Macroeconomics involves...

• Business and households

• Individual units

• Policies of RBA

• The broader economy - growth, inflation, unemployment

All choices entail an opportunity cost. True or False?

• True

• False

What does the hockey stick show?

(best answer)

• The fourth industrial revolution

• The increase in hockey players in 1800s

• A sudden, rapid growth after a long period of linear growth due to capitalism

• Economic downturn

The money households spend to purchase goods and services is...

• Input

• Expenditures

• Income

• Output

When was the industrial revolution?

(the first one!)

• 1900-1920

• 1600-1650

• 1850-1875

• 1760-1840

When good weather increases the wheat harvest, the result is:

• Higher quantity and lower prices

• Higher quantity and higher prices

• Lower quantity and lower prices

• Don't know

What word would apply if the total dollar value of spending in the United States went up but the goods and services consumed remained just the same?

• Deflation

• Recession

• Inflation

• Foreign exchange