Which best explains why goals are necessary for making allocation decisions
The available resources cannot be used to pursue every goal that each individual has, which best explains why goals are required for making allocation decisions.
Who makes decisions about how do you allocate resources quizlet
Terms in this set (41) In a market economy, firms and individuals interact in markets under the control of market prices to decide how to allocate resources.
Which best explains why resources results because people always want more no matter how much is produced
Which best explains why resources are limited because people are always on the lookout for more, regardless of how much is produced?
Which is an example of a production decision
Which describes a situation where the goal of security is being pursued? The government creates a retirement program for its citizens. Which is an example of a production decision? Cars are built on an assembly line.
Which of the following best explains why players in the game of economics are often in conflict
Some economic goals are incompatible with one another, which explains why players in the game of economics frequently clash with one another.
Which of the following fundamental economic questions addresses allocation of resources
In order to distribute societys limited resources, a nation must answer three fundamental economic questions: What and how much will be produced; for whom will the items be produced; and how will the items be produced.
Why is efficiency an important economic goal quizlet
Economic decision-making must be efficient if we are to produce enough goods and services, satisfy enough wants and needs, and leave enough resources for future generations.
Which of the following statements best describe the study of economics
The right response is: d. we make decisions when faced with scarcity.
Which of the following lists only factors that would cause an increase in the supply of an item quizlet
Which of the following only includes factors that would increase the supply of an item: an increase in the price of a substitute or complement that is currently in production; an expectation that the price of the item will rise in the future.
Which of the following best explains why making automobiles completely safe is not efficient
Which of the following statements most accurately describes why making cars completely safe is not cost-effective? when tax rates are high, an increase in tax rates is likely to result in a decrease in tax revenues.
Which of the following lists only the factors that would cause a decrease in the supply of an item quizlet
Which of the following only includes the factors that would result in a reduction in the supply of an item? d) an increase in input prices; a decline in the number of sellers in the market; and an increase in the cost of a substitute used in production
Which question must be asked about the use of resources in an economic system
What is the most efficient allocation of resources, what resource allocation will lead to the fastest growth, and which question must be asked regarding the use of resources in an economic system?
What describes an efficient outcome
The definition of an efficient outcome in a market is when the marginal cost and marginal benefit are equal.
Which of the following is a question that an economist would use to break down a problem
Why isnt everyone doing it?, What are the trade-offs?, What are the wants and constraints of those involved?, and How will others respond? are the four questions that economics use to break down problems.
Which of the following is a positive economic statement quizlet
Notice that the correct response merely stated what would happen if minimum wage increased and made no statement about whether that was good or bad. Positive economic statements are statements of fact that imply no value judgment.
What are economic models quizlet
An abstract description of a specific aspect of an economy is known as an “economic model,” which is used to understand the main causes and effects of economic events.
What is the best test of an economic theory
Predicting using the scientific method of thought—creating a theory from fundamental premises and putting it to the test against actual events—is the best way to evaluate an economic theory.
When the text refers to rational self-interest it means quizlet
When the text speaks of rational self-interest, it is referring to: A) your pursuit of personal happiness.