When we say that an individual behaves according to "rational self interest," we mean that this individual

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

economic test2

Question	Answer
When constructing economic models, economists are more concerned with	what people do than what they say.
In order for an economy to increase its production possibilities, the economy must	increase inputs.
When we say that an individual behaves according to "rational self interest," we mean that this individual	is making choices that he or she believes will leave him or her better off.
In an inverse relationship	one variable rises while the other falls.
Scalping at major sporting events is an example of	a black market caused by a price ceiling
When a society taken increasing amounts of resources and applies them to the production of specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies	the law of increasing relative costs.
Economic growth appears on a production possibilities curve as	the curve shifting out away from the origin.
Which of the following is not normative economic statement	the sentences that is not include should.
If equilibrium price falls and the equilibrium quantity of the good purchsed decreases, what has happened to either the supply curve or to the demand curve	Demand decreased.
Which of the following statements is true about scarcity	both rich and poor people face the problem of scarcity
Which expression below matches most closely the way economists go about testing their models	"Seeing the results is the only way to know if you are right."
The inflation adjusted rate of return on Social Security for most of today's college students will be	negative.
Rent controls primarily benefit	people who already occupy rental units.
Do economists analyze people's thought processes or do they look at what people actually do	Economists focus on what people do, not their thought processes.
"Wants" as an economic concept includes	both material and nonmaterial desires.
We observe that people buy less steak and more hamburger when the relative price of steak increases. This indicates that steak and hamburger are	substitutes.
A fundamental reason that governments provide public goods is	the free rider problem.
Assuming coffee and tea are substitutes, if the price of coffee rises	the demand curve for tea will shift to the right
When comparing market and public sector decision making, which statement is not true	in both decisin making sectors, there are scarcity constraints.
The price of a new textbook is $60 in one year and $75 two yeats later, while the price of a used copy of textbook increased from $25 to #37.50. the relative price of a new testbook	decreased from 1.4 to 1.25
To an economist, a free rider is a person who	benefits from consuming public goods without paying for them

Created by: amaal123

"Know" box contains:
Time elapsed:
Retries: