Macro test 1 prep – Flashcards

Unlock all answers in this set

Unlock answers
question
An economy's standard of living depends largely on its ___.
answer
productivity
question
____ is the study of how individuals and firms make decisions and how they interact in markets. This is more likely to create models that analyze the decisions of firms
answer
microeconomics
question
____ is the study of matters affecting the entire economy. Therefore it is more likely to create models that analyze the policy decisions of governments and central banks, as well as how these decisions affect growth, inflation, and unemployment.
answer
macroeconomics
question
____ is one that seeks to describe the world as it is. Ex: "If taxes were lowered, government revenues would actually increase".
answer
positive statement
question
____ is one that offers an opinion as to the way the world should be. Ex: "Taxes are too high".
answer
normative statement
question
___ statement can generally be supported or refuted by data.
answer
positive statement
question
___ statement require a larger philosophical framework to evaluate.
answer
normative statement
question
"Lung caners kills millions of people each year" is an example of a ___ statement
answer
positive statement
question
"Too many people smoke" is an example of a ___ statement
answer
normative statement
question
"If the government were to increase taxes on cigarettes, fewer people would smoke" is an example of a ___ statement
answer
positive statement
question
"The government should increase taxes on cigarettes" is an example of a ___ statement
answer
normative statement
question
___ is social science that studies how individuals, institutions and society make optimal choices under conditions of society
answer
Economics
question
___ is limited nature of resources
answer
Scarcity
question
Scarcity requires that ___ be made
answer
choices
question
____: rational self-interest entails making decisions to achieve maximum utility
answer
Purposeful behavior
question
____ is the pleasure or satisfaction obtained from consuming a good
answer
utility
question
different preferences and circumstances lead to different ___.
answer
choices
question
____- interest is not the same as selfishness
answer
rational self
question
giving to charity could be action in a rational self interest because it can increase ones happiness, doesn't make them selfish. this is an example of ____
answer
rational self interest
question
Land- or natural resources is a ___
answer
factor of production
question
labor-or human resources- how skilled the workforce is. this is a ____
answer
factor of production
question
Capitol- investment goods, manufacturing equipment, tool, transportation, machinery. is a _____.
answer
factor of production
question
___ is a tool to illustrate society's economic problem
answer
production possibilities frontier
question
PPF is ___
answer
production possibilities frontier
question
economy is employing all available resources (full employment) is a/an ___
answer
assumtion
question
____ focuses on tech and resources
answer
Macro
question
___ focuses on the individual
answer
Micro
question
PPF things on graph are (dependent/independent) of each other
answer
dependent
question
"Ceterus Perabus" means what?
answer
"with other things the same" or " all other things being equal or held constant "
question
Change in consumer preference, change in consumer income, or change in price of substitute can all do what. (assuming price is constant on demand curve)
answer
shift the demand curve
question
statement is one that seeks to describe the world as it is
answer
positive statement
question
statement is one that offers an opinion as to the way the world should be
answer
normative statement
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New