chapter 1-3

A good that is scarce is defined as

an economic good

a production level above the production possibilities curve means

it's not feasible

as the price of a product goes down the quantity purchased goes up best describes the

demand

as the price rises producers will produce more, as it falls the will produce less is the law of

supply

owning property encourages

innovation

the utility value of a good is its

satisfaction

when an economic decision consistently has the same result is said to be

principal

when the demand and supply curve intersect then

equilibrium

intellectual property in capitalism is protected by the

parents and copyrights

the most heavily weighted part of the FICO score is

payment history

According to the GAO, what is the largest part of the projected national debt is

future interest payments

The relationship between price and quantity on the demand curve can best be explained by

common sense, income, and law of diminishing curve

In a command economy the central planners must decide

what to produce, how much to produce, and who will produce it

The lowest cost producing country would more than likely be

the exporter

The U.S. Debt Clock shows a debt of $31

trillion

A movement along the production possibilities curve means that the quantity of one product has increased and the quantity of the other has decreased

true

All markets have in common Demand, Supply, Price and Quantity

true

a equilibrium marginal benefit equals marginal cost

true

China's miss allocation pf resources under Mao between farming and industry is a clear violation of production possibilities curve

true

Comparative advantage goes to the lowest cost producer

true

GDP at Purchasing Power Parity neutralizes the effect of market exchange rates

true

Inefficiency exists at equilibrium because there is always a shortage

false

Market clearing always results in a surplus

false

Market demand is influenced by Tastes and Preferences, Number of Buyers, and Income

true

Normative economics is defined by "what it ought to be"

true

Price and quantity are determined by the invisible hand

true

Scarcity is best described as nothing available.

false

When a product is at Equilibrium there is said to be a surplus

false

Does the phrase "unlimited wants and limited resources" apply only to the wealthy

false

In economics opportunity cost is what you have to give up to get what you want

true