What is the cost of decision?

What you decide to go, and assume how it affects what you choose and it implies a trade off

The best alternative that comes with any consequences

The option that only affects us in a positive way and that doesn't take others in account

Karl Marx was known for:

Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,

Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.

Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.

He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.

John Keynes was known for:

Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.

Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,

Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.

He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.

Friedman was known for:

He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.

Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.

Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,

Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.

Adam Smith was known for:

Being in the right and argued that the specialization of the labor force, coupled with a growing population, pushes wages down, adding that the value placed on goods and services does not accurately account for the true cost of labor, that he called surplus value,

Argued that demand drives supply and that healthy economies spend or invest more than they save. To create jobs and boost consumer buying power during a recession, held that governments should increase spending, even if it means going into debt. Use scarce resources to satisfy unlimited human wants.

Being in the left and introducing the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.

He said that an entity's greatest responsibility lies in the satisfaction of the shareholders. Therefore, the business should always endeavor to maximize its revenues to increase returns for the shareholders.

What is an individual decision ?

When consumers and producers can get together in a market to achieve social well being. And according to Adam Smith, this is possible unless a market failure exists.

When an individual household gets to decide where to spend there money

When there is a market failure and individual households reunite to go against the system and solve the situation.

How does the price mechanism work in a competitive market?

Producers offer articles for sale only if the price covers production costs, and sellers adjust prices based on competition

The government determines prices to ensure fairness

Sellers set prices arbitrarily based on demand

Prices are fixed and cannot be changed in a competitive marke

What is demand quantity?

The amount consumers plan to buy at a specific price in a certain period

The quantity of goods available in the market

The quantity of goods produced by sellers

The total quantity of goods and services in an economy

According to the law of demand, what happens when the price of a good increases?

Quantity demanded remains the same

Quantity demanded is unpredictable

How does the price of related goods affect demand?

If the price of a substitute rises, people buy less of it and more of the original product

The price of complements has no impact on demand

Prices of related goods have an inverse relationship with demand

What is the supply quantity?

The amount that producers plan on selling during a certain period at a specific price

The quantity of goods consumers are willing to buy

The quantity of goods available in the market

The total quantity of goods produced in an economy

What does a supply curve show?

The relationship between the quantity offered of a good and its price when other influences remain unchanged

The relationship between demand quantity and price

The historical changes in supply over time

The total quantity of goods produced in the market

How does the number of suppliers influence supply?

The larger the number of firms, the greater is the supply of the good

The number of suppliers has an inverse relationship with supply

A decrease in the number of suppliers increases supply

How can the demand curve be interpreted as a measure of marginal benefit?

It shows that as the available quantity of a good is limited, people are willing to pay a higher price for additional units

It measures the total benefit consumers receive

It indicates the maximum price consumers are willing to pay for any quantity of a good

It measures the average benefit consumers receive

When does a shift of the demand curve occur?

When factors influencing purchase change while the price remains constant

When demand increases or decreases

When the price of a good changes

When the quantity demanded at each price is higher

What is a change in demand?

When any factors influencing shopping plans cause the demand curve to shift, leading to a higher quantity demanded at each price

A change in the price of a good

A movement along the demand curve

How does future income and credit affect demand?

An increase in expected future income or easier credit access can lead to an increase in current demand

It decreases demand for all goods

It leads to a decrease in current demand

What does a supply schedule state?

he quantities supplied at each price when all other influences on producers' planned sales remain unchanged

The historical changes in supply over time

The total quantity of goods available in the market

The relationship between quantity offered and price

What does the minimum supply price represent?

The lowest price at which someone is willing to sell an additional unit, influenced by marginal cost

The maximum price consumers are willing to pay

The highest price a producer is willing to accept

How does technology influence supply?

Can increase the quantity of goods that can be produced, leading to an increase in supply

It decreases supply by increasing production costs

Technology only affects demand, not supply

What role do natural conditions play in supply?

Influence the feasibility of production and, consequently, the supply of goods

Natural conditions only affect demand, not supply

Natural conditions determine the prices of goods

Natural conditions have no impact on supply

How do market forces regulate prices and quantities bought and sold?

Regulates quantities demanded and supplied, adjusting when plans do not match

By allowing sellers to set prices arbitrarily

By fixing prices through government intervention

By limiting the quantity of goods available in the market

What does price elasticity of demand measure?

The responsiveness of the quantity demanded to a change in price

The relationship between price and quantity supplied

The percentage change in quantity supplied

When is demand considered elastic?

When the elasticity is greater than 1, meaning the quantity demanded changes significantly in response to a small price change

When the elasticity is 0, meaning the quantity demanded does not change at all regardless of the price change

When the elasticity is equal to 1, meaning the quantity demanded changes proportionally to the price change

When the elasticity is between 0 and 1, meaning the quantity demanded changes only slightly in response to a price change

What does microeconomics focus on?

The individual unit, including households, firms, and industries

The overall value produced in a country

The long-term trends in a nation's GDP

What characterizes positive economics?

Understands behavior and the operation of economic systems without making judgments

It focuses on economic policies to achieve better outcomes

It evaluates outcomes of economic behavior and prescribes courses of action

It analyzes the ethical implications of economic decisions

What does efficiency refer to in evaluating economic policies?

Producing at minimum cost without sacrificing quality and at the best possible time

The upward long-term trend of a nation's GDP

Low inflation and low unemployment rates

Fairness and better income distribution

What are the different markets discussed in Chapter 3?

Markets of goods and services, markets of factors of production, and markets of financial assets

Markets of goods and services only

Markets of factors of production only

Markets of financial assets only

What does a price elasticity of demand between 0 and 1 indicate?

Demand is inelastic, meaning that the quantity demanded changes only slightly in response to a price change

Demand is unit elastic, meaning that the quantity demanded changes proportionally to the price change

Demand is perfectly inelastic, meaning that the quantity demanded does not change at all

What is the purpose of a time series graph in economics?

To display how a single measure or variable changes over time

To show the relationship between two variables

To illustrate the equilibrium in a market

What does a scattered diagram in economics typically show?

Whether a relation exists between two variables and describes their relationship

The equilibrium price and quantity in a market

The relationship between price and quantity demanded

How does the market tend toward equilibrium?

The price regulates the purchase and sale plans, and adjustments are made when plans do not match

By allowing sellers to set prices arbitrarily

By limiting the quantity of goods available in the market

By fixing prices through government intervention

What does normative economics involve?

Analyzing outcomes of economic behavior, evaluating them as good or bad, and prescribing courses of action

Focusing on the overall value produced in a country

Describing economic systems and models without making judgments

Evaluating the efficiency of economic policies

Econ

Authored by Lia Lasso

Financial Education

University

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is economics?

Is the study of how people make decisions based on forecasts that always fulfill our needs and decrease our money

Is the study of how individuals, firms and societies choose to use their scarce resources, in order to improve their benefits, well-being, welfare or happiness

Is about how societies struggle to achieve the economic happinness due to governments.

Is the science that studies how societies interact in the commercial way in order to create a constant movement of money and avoiding inflation

OPEN ENDED QUESTION

3 mins • 1 pt

Name the economic agents

Evaluate responses using AI:

OFF

FILL IN THE BLANK QUESTION

1 min • 1 pt

Knowledge, income, properties, time and health are .... of individual hoseholds

MULTIPLE SELECT QUESTION

45 sec • 1 pt

What are the decisions individual households make

What to produce, how to, how much, the price of each product, finance, investment.

Education, health, national security, infrastructure, social welfare, etc.

What to buy, where to work, what to study

How to spend time and money

OPEN ENDED QUESTION

3 mins • 1 pt

What is essential for a firm to take in account when making a decision

Evaluate responses using AI:

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OPEN ENDED QUESTION

3 mins • 1 pt

What are the factors of production in a firm ?

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Scarce resources of governments

NON OF THE BELOW

Tax revenues, natural resources an human resources

Knowledge, income, properties, time, health

Labor, capital, land and entrepreneurship

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Econ

What is economics?

Name the economic agents

Knowledge, income, properties, time and health are .... of individual hoseholds

What are the decisions individual households make

What is essential for a firm to take in account when making a decision

What are the factors of production in a firm ?

Scarce resources of governments

What is the goal of governments?

What is the cost of decision?

It is the best alternative that we forget, or give up, when we make a choice or a decision.

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