SL2_Term 2_The Field of Economics

What is the primary focus of economics as a field of study?

• The study of weather patterns
• The analysis of choices made due to scarcity
• The history of ancient civilizations
• The behavior of animals

Which of the following best describes opportunity cost?

• The cost of the most expensive option
• The benefits of the next best alternative that is given up
• The total cost of all options
• The cost of making a choice

How do economists view individual choices?

• As random and unpredictable
• As decisions that maximize self-interest
• As decisions made without any thought
• As choices influenced only by emotions

What does it mean to make choices at the margin?

• Making decisions based on past experiences
• Choosing between two completely different options
• Deciding to do a little more or a little less of something
• Making choices without considering consequences

Which branch of economics focuses on individual decision-making units?

• Macroeconomics
• Microeconomics
• Global economics
• Behavioral economics

What is a key characteristic of macroeconomics?

• It studies individual markets
• It focuses on the total level of economic activity
• It examines consumer behavior
• It analyzes the choices of firms

Why might a higher price for water lead to reduced consumption?

• People will stop using water altogether
• People will make choices at the margin
• Water is not a necessity
• People will ignore the price

What is the assumption economists make about people's objectives?

• They are always altruistic
• They are defined in terms of self-interest
• They are influenced by social norms
• They are based on historical data

Which of the following is NOT a typical career for someone with a degree in economics?

• Financial analyst
• Teacher
• Professional athlete
• Government economist

What does the economic way of thinking encourage individuals to consider?

• Only the immediate benefits of choices
• The opportunity costs of their decisions
• The opinions of their friends
• The historical context of their choices