1st Semester Final - True/False Flashcards Preview

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Flashcards in 1st Semester Final - True/False Deck (28):
1

Positive Economics refers to making value judgments about existing or proposed economic policies.

False

2

Normative Economics observes economic choices and predicts economic events.

False

3

Menger proposed that an individual's decisions are based on personal utility.

True

4

Economics is considered science.

True

5

A line graph provides more data than a tabular model.

True

6

On a PPC, the point on the curve represent inefficient the production.

False

7

Financial capital is the tool that business firms use to produce goods and services.

False

8

Entrepreneurship is the most important factor of production. 

True

9

Transfer payments involve the government.

True

10

If the government receives less in taxes than it is paying out, it is operating under a budget surplus.

False

11

Dissaving is any time households withdraw money from an account over borrow it.

True

12

Crowding out has nothing to do with government budget deficits.

False

13

A financial market is the collection of a nation's financial institutions.

True

14

Inferior Goods increase in sales as consume income increases.

False

15

When a demand curve stays the same, economists say that the product is experiencing a change in demand.

False

16

Whenever a change in price causes a change in the number of items demanded, a change in quantity demanded has occured.

True

17

US currency is the currently based on gold and silver.

False

18

According to the Wolrd Factbook, the USA now has the 3rd largest GDP )gross domestic product) in the world.

True

19

The principle of Diminishing Marginal Utility states that people tend to receive less and less additional satisfaction from any good or service as they recieve more and more of it during a specific period of time.

True

20

Complementary goods work best when separated.

False

21

China has a the largest GDP in the world. 

True

22

The average American has no idea how bad our debt situation is.

True

23

A shift to the right on the supply schedule generally means that a decrease in supply has occured.

False

24

When a supply schedule is plugged on a graph, it is called a supply curve.

True

25

Supply is a the amount of goods and services business firms are willing and able to prodiuve at differently price

True

26

The point at which buyers and sellers disagree is called the Market Equilibrium Point.

False

27

A surplus is an excess of unsold products.

True

28

Opportunity benefit is the regret you feel over a choice you made.

False