Chapter 1 – Macroeconomics – Flashcards

In a market system scarce goods are allocated through the operation of

Suppose a city block was going to be used for a parking lot. The opportunity cost would be

Which of the following represents a positive economic statement?

Which of the following represent a normative economic statement?

Economic resources are the

Economists classify resources as

Because economic resources are used to produce goods and services, they are called

Studies indicate that married men on average earn more income than unmarried men of the same age and education level. From this statement, we can conclude that

Indicate whether each of the following statements applies to microeconomics or macroeconomics: The unemployment rate in the United States was 8.1 percent in August 2012:

Indicate whether each of the following statements applies to microeconomics or macroeconomics: A U.S. software firm discharged 15 workers last month and transferred the work to India:

Indicate whether each of the following statements applies to microeconomics or macroeconomics: An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise:

Indicate whether each of the following statements applies to microeconomics or macroeconomics: U.S. output, adjusted for inflation, decreased by 2.4 percent in 2009:

Indicate whether each of the following statements applies to microeconomics or macroeconomics: Last week Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point:

Indicate whether each of the following statements applies to microeconomics or macroeconomics: The consumer price index rose by 3.8 percent from August 2011 to August 2012:

Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing $25 each and the movie tickets start off costing $10 each. Would your attainable set of combinations increase or decrease if Your budget increases from $100 to $150 while the prices stay the same:

Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing $25 each and the movie tickets start off costing $10 each. Would your attainable set of combinations increase or decrease if Your budget remains $100, the price of books remains $25, but the price of movie tickets rises to $20:

Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing $25 each and the movie tickets start off costing $10 each. Would your attainable set of combinations increase or decrease if Your budget remains $100, the price of movie tickets remains $10, but the price of a book falls to $15:

Suppose that you are given a $100 budget at work that can be spent only on two items: staplers and pens. If staplers cost $10 each and pens cost $2.50 each, then the opportunity cost of purchasing one stapler is:

How (if at all) does the following event affect the location of a country's production possibilities curve? The quality of education increases:

How (if at all) does the following event affect the location of a country's production possibilities curve? The number of unemployed workers increases:

How (if at all) does the following event affect the location of a country's production possibilities curve? A new technique improves the efficiency of extracting copper from ore:

How (if at all) does the following event affect the location of a country's production possibilities curve? A devastating earthquake destroys numerous production facilities:

What are the two major ways in which an economy can grow and push out its production possibilities curve?

Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she has just 16 hours per week that she can spend working at either the bookstore or at other potential jobs. One potential job, at a café, will pay her $12 per hour for up to 6 hours per week. She has another job offer at a garage that will pay her $10 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $8.50 per hour for as many hours as she can work. If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?