Exam 1: Ten Principles of Economics

Approximately what percentage of the world's economies experience scarcity?

Tuition is the single-largest cost of attending college for most students.

The irregular and largely unpredictable fluctuations in economic activity are called

The term ______ refers to the size of the economic pie, and the term ______ refers to how the pie is divided.

The study of how society manages its scarce resources is most closely associated with which field of study?

When the government redistributes income from the wealthy to the poor,

When the government attempts to improve equality in an economy the result is often

The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by

Evidence indicates that seat belt laws have led to

The "invisible hand" works to promote general well-being in the economy primarily through

Give an example of a trade-off faced by society.

Which of the following rates of growth in the money supply is likely to lead to the lowest level of inflation in the economy?

Market economies are distinguished from other types of economies largely on the basis of

Tracy quits her job, which pays $25,000 a year, to finish her college degree. Her annual college expenses are $12,000 for tuition and fees and $1,000 for books. What is her opportunity cost of attending college for the year?

Something that induces a person to act is called

Economists study how people make decisions.

The invisible hand ensures that economic prosperity is distributed equally.

Which of the following products would be considered scarce?

Rational people make decisions "at the margin" by comparing

Economics is the study of how society manages its