Exploring the Basics of Economics

Who are the hosts of Crash Course Economics?

• John Green and Hank Green

• Jacob Clifford and Adriene Hill

• Statler and Waldorf

• Kermit and Miss Piggy

What is economics primarily the study of?

• Money and getting rich

• Men in bow-ties forecasting markets

• The stock market

• People and choices

What is the term for the value of the next best alternative that you give up when making a choice?

• Fixed cost

• Sunk cost

• Marginal cost

• Opportunity cost

What are the two most important assumptions in economics?

• No wants and unlimited resources

• Unlimited wants and limited resources

• Limited wants and unlimited resources

• Unlimited resources and no costs

What is the opportunity cost of military spending in the US?

• More military equipment

• Higher taxes

• Social services like hospitals and schools

• Lower unemployment

What can happen if incentives are poorly designed?

• They always work perfectly

• They only benefit the government

• They can backfire and worsen the problem

• They have no effect

What was the unintended consequence of the French colonial regime's bounty on rats in Vietnam?

• The rat population decreased

• The policy had no effect

• The rat population increased

• People stopped catching rats

What does macroeconomics study?

• The economy as a whole

• Individual consumer behavior

• Business decisions

• Cell biology

Which of the following is a microeconomic question?

• What is the effect of a tax increase on inflation?

• What is the GDP of a country?

• How many workers should a company hire to maximize profit?

• What is the national unemployment rate?

What is the main focus of microeconomics?

• National output and growth

• Interest rates and government spending

• Individual and business decisions

• Global trade policies