macro – Flashcards with Answers
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Economics is BEST defined as the study of how:
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people make rational decisions.
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Because of scarcity:
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we face tradeoffs in nearly every choice we make.
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Paying a salesperson more for increased sales is an example of:
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an incentive.
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Macroeconomics is concerned with issues such as:
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unemployment.
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Supply and demand analysis is used:
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in both microeconomics and macroeconomics.
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The economics of uranium mining would be studied in:
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microeconomics.
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A theory composed of a number of assumptions and facts boiled down to their basic relevant elements is called a:
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model.
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When goods are produced at the lowest possible cost, an economy is said to have achieved:
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production efficiency.
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In the study of economics, the goals of efficiency and equity are often:
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conflicting with one another.
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Scarcity:
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is faced by all individuals and societies.
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The opportunity costs of attending college do NOT include:
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the expenditures for food.
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When the government chooses to use resources to build tourist centers, the chosen resources are no longer available to build highways. This BEST illustrates the concept of:
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opportunity cost.
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Which is TRUE about specialization and exchange between two individuals?
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They generally benefit the poorer individual as well as the richer individual.
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Which of the following is a key idea in economic thinking?
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Incentives matter.
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Rational behavior requires "thinking at the margin." Which of the following is an example of this type of thinking?
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All of these are examples of "thinking at the margin."
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People use _____ to determine how many hours to work, and businesses use _____ to determine how much of their product they are willing to supply to the market.
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marginal analysis; marginal analysis
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Which of the following is NOT an example of market failure?
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Competition leads firms to provide products at the lowest possible price.
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Which of the following is a case when the government should intervene in the economy?
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when the market fails to provide goods efficiently
