ECON 6151 BASIC ECONOMICS 2022 Completed with Correct Answers Only
ASSIGNMENT 1
1. Economists argue that this is one of the most fundamental
economic
... [Show More] problems around the world.
SCARCITY
2. If people want more of it then it would be better if this is
available for free.
ECONOMIC GOOD
3. The labor input consists of the physical and intellectual
services provided by human beings.
TRUE
4. This is a concept wherein people are willing to pay to avoid
the item.
ECONOMIC BAD
5. This is defned as the additional cost associated with a oneunit increase in the level of the activity.
MARGINAL COST
6. This is the study of how individuals and societies use limited
resources to satisfy unlimited wants.
ECONOMICS
7. This category is sometimes described as the "free gifts of
nature" wherein those resources that exist independent of
human action.
LAND OR NATURAL RESOURCES
8. He argued that economic growth occurred as a result of
specialization and division of labor.
ADAM SMITH
9. This can play an important role in supply decisions due to
demand.
EXPECTATIONS
10. This is defned as the cost of not selecting the "nextbest" alternative.OPPORTUNITY COST
ASSIGMENT 2
1. This is defned as the cost of not selecting the "next-best"
alternative.
MICROECONOMICS
2. This is not a static body of truthsrather; it is an expression of a
perspective about economic activities during a particular
historical period.
ECONOMIC THEORY
3. He divided the concerns of economics into two separate felds;
one was oikonomiks the other chrematistiks.
ARISTOTLE
4. He is an Austrian who developed the concept of marginal utility
concurrently and independent of Jevons.
CARL MENGER
5. It provided a justifcation for and explanation of the activities of
the rising merchant class.
MERCANTILISM
6. He identifes the division of labor as a primary source of
increased productivity and the Wealth of Nations.
ADAM SMITH
7. He can be regarded as a transitionary writer wherein he connects
the Classical economists and Utilitarianism to the development
of market oriented microeconomics.
JOHN STUART MILL
8. He was a poor stone mason and carver who believed it his divine
mission to test the truthfulness of all statements.
SOCRATES
9. This explains how inputs used to produce a set of goods that will
result in the maximum social wealth.
GENERAL EQUILIBRIUM MODEL
10. This was simply the sum of the individual utilities which
focuses the analysis on the individual.
TOTAL UTILITY OF SOCIETYSHORT QUIZ 1
1. Economic good is if the quantity of the good demanded
exceeds the quantity supplied at a zero price.
TRUE
2. This is a market system in which goods or services are traded
directly for other goods or services.
BARTER SYSTEM
3. This is the production of a good if the individual can produce
more than the other individuals.
ABSOLUTE ADVANTAGE
4. Goods that are used to produce other goods or services are
called economic growth and are also known as inputs or
factors of production.
FALSE
5. These are markets that demand for a product includes both
domestic and foreign demand.
INTERNATIONAL MARKETS
6. This is the inverse relationship exists between the price of a
good and the quantity demanded in a given time period.
LAW OF DEMAND
7. The category of "land" includes all natural resources wherein
these natural resources include the land itself, as well as any
minerals, oil deposits, timber, or water that exists on or below
the ground.
TRUE
8. It refers to the ability to organize production and bear risks.
ENTREPRENEURIAL ABILITY
9. This is the rate at which the currency of one country is
converted into the currency of another country.
EXCHANGE RATE
10. This is the production of a good if the individual can
produce the good at the lowest opportunity cost.
COMPARATIVE ADVANTAGESHORT QUIZ 2
1. This is the production of a good if the individual can produce the
good at the lowest opportunity cost.
CHREMATISTIKS
2. He was the successor to Walras at the University of Lausanne
whose name has been associated with the basic criteria used as
a measure of efciency.
PARETO
3. They are often regarded as the frst important contributors to
Western culture.
GREEKS
4. He developed an analysis of the moral system (The Theory of
Moral Sentiments), then an economic system (The Wealth of
Nations).
ADAM SMITH
5. He draws an analogy between the Principles of Maximum Energy
and the Principles of Greatest Happiness.
FRANCIS YSIDRO EDGEWORTH
6. He is the best known of the early contributors to French
rationalist microeconomics wherein he perceives the quantity
demanded as a continuous function of the price.
AUGUSTIN COURNOT
7. His influence on the development of microeconomics is through
the work of Leon Walras.
COURNOT
8. This approach encourages the focus to be on individual behavior
and the optimization of the welfare of the individual.
UTILITARIAN APPROACH
9. It evaluates the current state of our world and to speculate on
ways that it might be improved; it is an important aspect of our
education.
ECONOMICS
10. He began his Republic with an economic interpretation of
history wherein he begins by seeking the meaning of justice.
PLATOASSIGNMENT 3
1. Firms own the factors of production and consume all the goods
and services that the frms produce.
FALSE – HOUSEHOLDS
2. Albert Einstein, the famous seventeenth century scientist and
mathematician, allegedly became intrigued one day when he
saw an apple fall from an apple tree.
FALSE - ISAAC NEWTON
3. Concept produces goods and services using inputs, such as
labor, land, and capital such as buildings and machines.
FALSE – FIRMS
4. Households provide frms the inputs that the frms use to
produce goods and services.
TRUE
5. The art in scientifc thinking whether in physics, biology, or
economics is deciding which assumptions to make.
TRUE
6. One of the Ten Principles of Economics known is that people face
tradeoffs and another of the Ten Principles of Economics is that
the cost of something is what you give up getting it and this is
called the gross product.
FALSE – CALLED OPPORTUNITY COST
7. The economy can possibly produce given the available factors of
production and the available production technology that frms
can use to turn these factors into output.
TRUE
8. In the markets for the factors of production, households are
sellers and frms are buyers.
TRUE
9. Machines consume less than they desire because their spending
is constrained, or limited, by their income.
FALSE – PEOPLE
10. Rectangular-flow diagram is a model where the economy
has two types of decision-makers which are households and
frms.
FALSE – CIRCULARSHORT QUIZ 3
1. One of the Ten Principles of Economics which is the cost of something
with what you give up to get it, one good as measured in terms of the
other good.
OPPORTUNITY COST
2. True or False. An outcome is said to be efcient if the economy is
getting all it can from the scarce resources it has available.
TRUE
3. True or False. The theory of consumer choice examines the tradeoffs
that people face in their role as consumers.
TRUE
4. True or False. The circular-flow diagram offers a simple way of
organizing all the economic transactions that occur between
households and frms in the economy.
TRUE
5. True or False. People consume more than they desire because their
spending is constrained, or limited, by their income.
FALSE – LESS
6. True or False. The production possibilities frontier simplifes a complex
economy to high- light and clarifes some basic ideas. We have used it
to illustrate some of the concepts like scarcity, efciency, tradeoffs,
opportunity cost, and economic growth.
TRUE
7. According to this theory, if private parties can bargain without cost
over the allocation of resources, then the private market will always
solve the problem of externalities and allocate resources efciently.
COASE THEOREM
8. This is a graph that shows the various combinations of outputthat the
economy can possibly produce given the available factors of
production and the available production technology those frms can
use to turn these factors into output.
PRODUCTION POSSIBILITIES FRONTIER
9. True or False. Households and frms interact in two types of markets
wherein the markets for goods and services, frms are buyers and
households are sellers.
FALSE
10.This produce goods and services using inputs, such as labor, land, and
capital (buildings and machines).
FIRMSLONG QUIZ 1
1. Goods that are used to produce other goods or services are
called _______ and are also known as inputs or factors of
production.
ECONOMIC RESOURCES
2. This _______ is individual that trade goods or services for money
and then use this money to buy the goods or services that they
wish to acquire.
MONETARY ECONOMY
3. _______ is largely responsible for the simplifcation of Bentham's
utilitarian philosophy as is has come to be used as a foundation
for mainstream microeconomics.
JEVONS
4. _______ influence on the development of microeconomics is
through the work of Leon Walras.
COURNOT
5. Households and frms interact in two types of markets. In the
markets for goods and services, _______ are buyers and _______
are sellers.
HOUSEHOLD, FIRMS
6. _______ developed an analysis of the moral system called The
Theory of Moral Sentiments, then an economic system called The
Wealth of Nations.
ADAM SMITH
7. This _______ approach encourages the focus to be on individual
behavior and the optimization of the welfare of the individual.
UTILITARIAN APPROACH
8. The theory of consumer choice examines the tradeoffs that
people face in their role as _______.
CONSUMERS
9. _______ is if the quantity of the good demanded exceeds the
quantity supplied at a zero price.
ECONOMIC GOOD10. This is defned as the additional cost associated with a oneunit increase in the level of the activity.
MARGINAL COST
11. Another of the Ten Principles of Economics is that the cost
of something is what you give up to get it, one good as measured
in terms of the other good.
OPPORTUNITY COST
12. _______ draws an analogy between the Principles of
Maximum Energy and the Principles of Greatest Happiness.
FRANCIS YSIDRO EDGEWORTH
13. They own the factors of production and consume all the
goods and services that the frms produce.
HOUSEHOLDS
14. According to him, if private parties can bargain without
cost over the allocation of resources, then the private market will
always solve the problem of externalities and allocate resources
efciently.
COASE
15. This implies the existence of tradeoffs wherein these
tradeoffs can be illustrated quite nicely by a production
possibilities frontier.
SCARCITY
16. Stocks, bonds, and other fnancial assets are examples of
_______.
CAPITAL/RESOURCES
17. He is the famous seventeenth century scientist and
mathematician, allegedly became intrigued one day when he
saw an apple fall from an apple tree.
ISAAC NEWTON
18. This a graph that shows the various combinations of
outputthat the economy can possibly produce given the available
factors of production and the available production technology
those frms can use to turn these factors into output.
PRODUCTION POSSIBILITIES FRONTIER
19. This is the inverse relationship exists between the price of
a good and the quantity demanded in a given time period,
ceteris paribus.
LAW OF DEMAND20. This diagram offers a simple way of organizing all the
economic transactions that occur between households and frms
in the economy.
CIRCULAR – FLOW DIAGRAM
21. _______ is the production of a good if the individual can
produce the good at the lowest opportunity cost.
COMPARATIVE ADVANTAGE
22. They produce goods and services using inputs, such as
labor, land, and capital (buildings and machines).
FIRMS
23. _______ began his Republic with an economic interpretation
of history wherein he begins by seeking the meaning of justice.
PLATO
24. _______ produce goods and services using inputs, such as
labor, land, and capital (buildings and machines).
FIRMS
25. This is the _______ production of a good if the individual can
produce more than the other individuals.
ABSOLUTE ADVANTAGE
26. An _______ is said to be efcient if the economy is getting
all it can from the scarce resources it has available.
OUTCOME
27. In these markets, households provide frms the inputs that
the frms use to _______ and _______.
PRODUCE GOODS AND SERVICES
28. This is the relationship that exists between the price of a
good and the quantity supplied in a given time period.
SUPPLY
29. This diagram represents the flows of goods and services
between households and frms.
CIRCULAR – FLOW DIAGRAM
30. This _______ demand for a product includes both domestic
and foreign demand.
INTERNATIONAL MARKETSSHORT Q [Show Less]