Vocabulary

What does it mean to evaluate something?

• To analyze only its price

• To decide how valuable it is after considering its features

• To purchase it immediately

• To ignore its features

What are goods in economics?

• Services that provide satisfaction

• Only tangible products

• Items that cannot be sold

• All things from which individuals derive satisfaction or happiness

What does limited refer to in economics?

• The study of macroeconomics

• Unlimited wants

• A small amount or degree of something

• An abundance of resources

What is macroeconomics?

• The branch of economics that studies the entire economy

• The study of individual markets

• A method of predicting consumer behavior

• The analysis of specific industries

What is the primary focus of microeconomics?

• Unemployment rates

• The entire economy

• Markets, prices, and industries

• Aggregate production

What are models or theories in economics?

• Only mathematical equations

• Simplified representations used for predictions

• Complex representations of reality

• Unverified assumptions

What does normative economics involve?

• Value judgments about economic policies

• Purely scientific predictions

• Descriptive statements about the economy

• Statistical analysis of data

What is opportunity cost?

• The total cost of goods sold

• The price of a commodity

• The highest-valued next-best alternative sacrificed

• The cost of production

What is the definition of scarcity?

• A state of equilibrium

• A surplus of goods

• Unlimited wants and limited resources

• A condition of abundance

What is a commodity?

• A theoretical concept

• A type of service

• A form of capital

• An item that is bought or sold