Study Review Micro Ch. 1 Essay
Is the discipline of economics concerned with individual units such as a person, household, firm, or industry True Communism exhibits all the characteristics of a command system Which of the following describe a command system? Government ownwershiop of most or all property resources A government appointed central planning board Economics is a social Science concerned with the allocation of scarce Resources to meet the unlimited wants Of the members of a given society. Marginal analysis involves the comparison or evaluation of: * The incremental cost versus the incremental benefit of a decision * An good economic system must address the following questions: * What gods are to be produced? * How they are to be produced? Who gets what is produced? * * An equitable outcome is one where each individual affected is treated faily * * The economic question of what to produce is about decisions related to the mix of goods and services to make available in a given economy * * Which of the following results from scarcity with respect to economic resources? * The production of limited goods and services * The economic question of how to produce is about decisions related to the mix factor input land, labor, capital used to produce gods and services. * * True: In a command system, the government decides how a country’s resources will best be utilized * * A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions is known as an: economic theory, and economic principle *
* Due to scarce resources, every individual, whether rich or poor, is faced with an implicit cost when choosing to produce or consume more of one good over another. * False: Economcis, as a social science, is concerned with how to make money? * * Macroeconomics is the discipline that examines either the economy as a whole or in the aggregate. * * When comparing the additional or incremental cost verses additional or incremental benefits of a decision, one is engaging in: marginal analysis * * Which of the following describe the role of government in the United States form of capitalism? * Modifies the distribution of income, provides certain goods and services that would otherwise be underproduced or not produced at all. Promotes economic stability and growth * Pure capitablism is also known as laissez-faire capitalism. * * False: the three main decision that msut be addressed by an economic system include what gods are to be produced, who will produce them, and where they will be produced. * * An economic system is a particular sset of institution arrangements and a coordinating mechansism that respons to the allocation of scarece resources to meet unlimited wants and needs. * * Natural resources, labor, human capital, physical capital and entrepreneurshop are all scarce resources priatley or collectibely owned by members of society.
Where these scarce resources are used to produce goods or services, there is a cost borne by society in utilizing these resources to produce any good or service and no free lunch * * Private property rights, coupled with the freedom to negotiate binding legal documents enables individuals and businesses to obtain, use, and dispose of property resources as they see fit. * * False: Governemtn owns most of the property resouces usch as land and capital in a market system. * * Consumers derive personal satisfaction from goods and services by: acting in a their own self interest.
Allocating their time, energy, money and other resources so as to maximize their satisfaction from consuming these goods * * The term “laissez-faire refers to keeping government form interfering in the economy. * * A central planning board sets the division of output between capital and consumer goods in a command system? * * Positive economic analysis concernes what is, whereas normative economic analysis represent subjective statement about what ought to be. * * Which of the following gare all possible because of private property rights in a market system? * Economic growth, investment, maintenance of property, innovation, exchange