Economic thinking

Study plan: pretest

Because of our limited money, time, and effort, we allocate our time, money, and effort

by constantly assessing the opportunity costs of our choices.

Which assumption below best describes the basic understanding economists have about the world?

The world has limited productive resources.

Identify which of the following microeconomic topics can have an impact on macroeconomic topics?

How do people decide how much to save for the future, or whether they should borrow to spend beyond their current means?

Society gains advantages through trade because

it allows specialization and increased production.

What are the factors of production?

land, economic capital, labor, entrepreneurship.

Functions are often described as cause and effect in economics. In an economics function, if the variable is on the right-hand side and is doing the explaining, it represents a(n) _______.

cause.

According to the order of operations in solving equations, which step should come first?

Simplify inside parentheses and brackets.

Once an economic model is constructed around certain assumptions, it can be tested to determine its value in

predicting outcomes.

From the graph above, one could conclude that, all else remaining constant

there is a trade off between x and y.

A graph in the xy plane with a single point at 3 on the x (horizontal) axis and a vertical line upwards from that point to infinity would be represented by the equation

x=3.

The relationship between students' head size and students' test scores can best be represented on a graph by

a line with zero slope (no relationship between size of student head and test scores)