Econ Quiz 1 Test – Flashcards
Unlock all answers in this set
Unlock answersquestion
The basic difference between macroeconomics and microeconomics is that:
answer
microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets).
question
As depicted in _________________________________, it is necessary to give up some of one good to gain more of the other good.
answer
the production possibilities frontier
question
Attending college is a case where the ________________ exceeds the monetary cost.
answer
opportunity cost
question
Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:
answer
the benefit to his grades from studying for an hour
question
Scarcity implies that:
answer
it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available.
question
The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.
answer
utility
question
The choice on a production possibilities set that is socially preferred, or the choice on an individual's budget constraint that is personally preferred, will display
answer
allocative efficiency
question
Referring to Table 2-1 below: A student has only a few hours to prepare for two different exams this afternoon. The below table shows alternative possible exam scores with three alternative uses of the student's time. The opportunity cost of scoring a 94 on the economics exam rather than a 77 is:
answer
15 points on the history exam.
question
Which of the following best describes a fiscal policy tool?
answer
government spending
