An Introduction To Economics! Trivia Quiz

Opportunity cost refers to the value of the next best alternative that is forgone when making an economic decision. In other words, it is the cost of choosing one option over another. This concept recognizes that by choosing to allocate resources to one option, the benefits and potential gains from the next best alternative are lost. Therefore, opportunity cost highlights the trade-offs and potential losses associated with decision-making in an economic context.

Ceteris paribus is a Latin phrase that means "all other things being equal" or "holding all other factors constant." It is a central concept in economic theories as it allows economists to isolate the effect of a specific variable on an outcome by assuming that all other variables remain unchanged. By using ceteris paribus, economists can analyze the relationship between cause and effect without the complications of other factors influencing the results.

When a good is considered abundant, it is said to be a free good. A free good refers to a good that is available in such large quantities that it is not scarce and does not have a price attached to it. It is easily accessible and does not require any payment or exchange. Therefore, in this context, the correct answer is "Free good".

A positive statement is a statement that can be tested, proven, proved, proved correct, or proven correct. This means that a positive statement can be subjected to empirical observation or logical reasoning to determine its validity. It can be verified through experimentation or evidence, and its accuracy can be confirmed. Therefore, a positive statement is one that can withstand scrutiny and be supported by facts or logical arguments.

The correct answer is a model comparing an agricultural good with an industrial good to illustrate opportunity costs and/or economic recession/growth. The PPF model, or production possibility curve, is used to show the different combinations of two goods that an economy can produce given its limited resources and technology. It demonstrates the concept of opportunity cost, as producing more of one good requires sacrificing the production of another. The PPF model can also be used to analyze economic recession or growth, as shifts in the curve indicate changes in the economy's productive capacity.

An economic good is considered scarce because its availability is limited in relation to the demand for it. This scarcity creates value and necessitates choices and trade-offs in its allocation. As a result, economic goods are typically subject to price mechanisms and are not freely available in unlimited quantities.

A statement that cannot be tested is said to be normative. Normative statements express an opinion or subjective judgment about what should or ought to be, rather than describing what is actually true or false. These statements are based on values, beliefs, or personal preferences, and cannot be proven or disproven through empirical evidence or scientific methods.

The question "When to produce?" is not typically listed as one of the basic questions of economics because it is more related to the timing and scheduling of production, rather than the fundamental principles of economic decision-making. The basic questions of economics usually focus on the allocation of scarce resources, such as "How to produce?" which refers to the choice of production methods, "What to produce?" which refers to the selection of goods and services to be produced, and "For whom to produce?" which refers to the distribution of goods and services among different individuals or groups in society.

Option 1 is correct while option 3 is a good definition of "marginal utility"

The three sectors of production are the primary sector, which involves the extraction of raw materials, the agricultural sector, which involves the cultivation of crops and the raising of livestock, and the tertiary sector, which includes services such as transportation, healthcare, education, and entertainment. The tertiary sector is an important part of the economy as it provides essential services that support the functioning of society and contribute to economic growth.

Transition economies: "Previously planned economies moving towards a more free-market economic system"