Economics Assumptions

Which of the following illustrates the concept of scarcity?

• more clean air is wanted than is available in large polluted metropolitan areas
• there is usually more than one use of your "free" time in the evening
• There are many competing uses for the annual budget of your city, county, or state
• all of these are correct

Which of the following are factors of production?

• the outputs generated by the production process transforming land, labor, and capital into goods and services
• resources restricted to the land, such as natural resources that are unimproved by human economic activity
• land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories).
• just labor and capital in industrialized countries, where natural resources are no longer used to produce goods and services

Is it okay to assume in economics?

• economics is like gender-no

• yeah i guess do what you want, not needed though

• yes, Assumptions are useful in economics

• assumptions are a stain on society

What is Economics about?

• The choices we make that affect the world around us

• the study of money

• a way to examine society's impact on people

• a waste of time; a joke

Which of the following is a basic assumption of economics?

• All economic systems are monopolistic competition

• the existence of limited resources; scarcity

• Opportunity Cost only affects impoverished people

• Economists invented money to sell more money

Which of the following is not a basic assumption of economics?

• Every choice you make requires you to give something else up

• people make choices based on rational thinking

• Everything you give up has a cost

• some economic systems accurately model perfect competition

Why are assumptions in economics important?

• They allow us to make totally accurate guesses of future decisions

• They help us understand complex economies using simplified models

• They give economists something to model their work after

• they make writing quiz questions a lot easier

What is macroeconomics?

• the study of economics in individual behavior and particular markets

• how individual markets interact with other markets

• the study of economics over the entire national economy

• macroeconomics and cheeeeese

What is Microeconomics?

• how smaller markets interact with larger markets

• The study of how individuals interact with markets

• study of larger and smaller economies around the world

• the study of the entire national market

Which of the following is a need?

• Crayons
• Video Games
• Basketballs
• Houses