Make up 1 Into to Economics

What is economics?

• The study of the stock market

• The study of getting rich

• Men in bowties

• The study of people and choices.

How could the United States avoid having the 30,000 fatalities that result from car crashes?

• get rid of all the cars

• change the laws

• allow people to teleport

• self-driving cars

Why do individuals still drive even though there is a slight chance they could end up dying in a car crash?

• Because the benefits clearly outweigh the costs.

• Because the costs clearly outweigh the benefits.

• Because some people like the adrenaline rush from the risk of dying.

• Because people love the freedom that comes with driving a car.

Why can't we produce an infinite amount of weapons and consumer goods?

• We have too many economic resources

• We have too many economic needs to take care of

• We do not have enough economic resources

• We have do not have enough economic wants 

What is the opportunity cost of military spending?

• The war we will win

• The jobs of our military leaders

• The resources not being used for social services, like feeding the hungry

• All of the above are correct

What is an incentive?

• A set of external motivators that explain people's choices

• The discouragement or restrain from acting or making decisions

• The motivation within people caused by internal rewards

• A set of internal motivators that establish people's choices

What is opportunity cost?`

How do incentives affect economic decisions?

What are the two most important assumptions in economics?

• Resources are unlimited.

• Resources are limited. Scarcity exists.

• Everything has a cost.

• Some things are free.

What are the two types of economists?

• Macroeconomics

• Capital Economics

• Natural Economics

• Supply-Side Economics

• Microeconomics