Economics-Final Study Guide

Abigail and Nora are discussing the effects of a global recession on different countries. What is the study of such large scale economic events called?

• Microeconomics

• Macroeconomics

• Opportunity Cost

• Utility

Grace is trying to decide how to spend her monthly allowance. She is considering whether to buy a new book, save for a concert ticket, or purchase a gift for her friend. What is the study of such choices of individual people, households, and businesses called?

• Macroeconomics

• Microeconomics

• Services

• Utility

What is the regret associated with options not chosen called?

• Utility

• Opportunity Cost

• Transfer Payment

• Profit

David is starting a new business and is focusing on providing experiences that customers can enjoy without taking home a physical product. What are these intangible products called in economics?

• Goods

• Services

• Models

• Capital

Harper is deciding between different activities for the weekend. What is the satisfaction she receives from her choice called?

• Utility

• Profit

• Transfer Payment

• GDP

Elijah is studying economics and wants to measure his satisfaction from consuming different goods. What is a unit of measurement for satisfaction in economics?

• Dollar

• Util

• Model

• Labor

Give an example of an economic good.

• Water

• Air

• Sunlight

• Friendship

Analyze a situation for opportunity cost/opportunity benefit.

• Comparing the value of the next best alternative forgone.

• Calculating total revenue from all alternatives.

• Identifying only the monetary costs involved.

• Ignoring non-monetary factors in decision making.

Determine if the following statement is positive or normative: 'The government should increase the minimum wage.'

• Normative

• Positive

• Descriptive

• Empirical

Economics is the common sense science of how and why people make the choices they do. As a science, economics always begins with the observation of ________.

• choices

• money

• resources

• markets