What is Economics best defined as?
How people make choices under the conditions of scarcity and the results of those choices.
Is the range of topics or issues that fit within the definition of economics limited or wide?
Extremely wide, pertaining to the ideas of choice and scarcity.
What is the one thing that, at the very least, identically limits both Joe Average and Bill Gates?
a) their wealth.
b) the 24 hours that comprise a day.
c) their knowledge.
d) their influence
Josh wants to go to the football game this weekend, but he has a paper due on Monday. It will take him the whole weekend to write the paper. Josh decided to stay home and work on the paper. According to the scarcity principle, the reason Josh didn’t go to the game is that:
a) Josh prefers schoolwork to football games.
b) writing the paper is easier than going to the game.
c) Josh doesn’t have enough time for writing the paper and going to the game.
d) it’s too expensive to go to the game.
Curly used his frequent flyer miles to fly to visit Moe. Curly told Moe that it didn’t cost him anything to visit. Is Curly correct?
No, because Curly had to pay for earlier trips in order to earn the frequent flyer miles.
From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the:
Marginal benefit of more insurance coverage is greater than the marginal cost
