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macroeconomics deals with

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the working of the entire economy

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the primary emphasis in macroeconomics is on

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the national economy

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scarcity in economics means

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society is unable to produce all the goods and services we want with existing resources

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the basic concern of economics is

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to study the choices people make

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water is considered a scarce good because

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not enough of it is available for all needs at zero cost

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corner offices in high rise office buildings usually cost more to rent than other offices. This fact best illustrates the economic principle of

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scarce resources

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manny is attending college and majoring in economics. Manny is improving his scarce resource of

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labor

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you can either spend $100 on a new economics textbook or anew Blu-ray player. If u choose to buy the new economics textbook, the opportunity cost is

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the new blu-ray player

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the cost of leaving a championship soccer match before it ends is _________, while the cost of staying for the entire match is ________

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the opportunity cost of not seeing the winning goal with two minutes to go; the opportunity cost of what else uou could have done during that time

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the cost of going to college, rather than working full time instead is

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tuition, the cost of housing, the cost of books, and forgone income

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you decide to join the economics club, but this means you can't join the accounting club because it meets at the same time. This statement best represents the economic concept of how:

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the real cost of something is what u must give up to get it

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the student center on campus has burritos, bagels, or burgers for lunch. U love burgers and bagels, but uou decide to have a burger today, and if they had been out of burgers, u would have bought a bagel. This statement best represents the economic concept of:

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the real cost of something is what u must give up to get it.

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which of the following methods of discouraging speeding is likely to be most effective?

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increasing the fine associated with speeding tickets

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to encourage young people to go to college within their home state, state universities can

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offer lower tuition to in-state students

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which of the following is an example of individual choice

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lauren spends her allowance on pillows for her bed

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which of the following statements is a normative statement

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the best way to encourage growth in the economy is through government spending

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which of the following is and example of normative economics

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the minimum wage is an important tool in fighting poverty and should be increased

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which of the following would be a positive economic statement

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there has been an increase in the rate of inflation

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which of the following is an example of a positive statement

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the poverty rate is 4%

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statements that make value judgments are

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normative

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which of the following is an example of a normative statement

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everyone in america deserves to be covered by national health insurance

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the current rate of unemployment is 5%. This statement:

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is positive

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last month, unemployment decreased to its lowest level in 10 years. This statement is an example of:

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a positive economic statement

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a normative statement deals with

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what ought to be

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an economist that studies the macro economy is most concerned with

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the rise and fall of national income

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which of the following is the best example of a normative statement

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the best way to reduce poverty is to increase the earned income tax credit

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a nations copper mines is part of that nations ________ resource.

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land

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a simplified representation that is used to study a real situation is called:

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a model

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recessions are periods when

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output and employment are falling

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a business cycle is

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a short run alteration between economic upturns and downturns

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in a typical business cycle the business cycle trough is immediately followed by the

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expansion

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which of the following measures is typically used as an indicator of the conditions in the labor market

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the unemployment rate

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in a typical business cycle, the business cycle peak is immediately followed by the

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recession

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economic expansion is typically associated with which statistic

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a falling unemployment rate

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the point on a business cycle when aggregate output stops falling and begins rising is an

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expansion

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the sequence of business cycle phases is

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business cycle peak, recession, business cycle trough, expansion

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in macroeconomic

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aggregate data such as real gross domestic product, the price level and unemployment are analyzed

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during a recession, one will often observe

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unemployment rates increasing while aggregate output is falling

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when economists measure economic growth, they often use

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long term changes in the maximum possible output in the economy

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when an economy experiences a contraction in its business cycle, this is often

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considered to be a recession

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when overall price levels rise over time, this is referred to as

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inflation

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a typical expansion in the business cycle is detected by

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falling unemployment rates and rising aggregate output

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the economy factors of production are not equally suitable for producing different types of goods. This principle generates

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increasing opportunity cost

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if an economy produces the mix of goods that consumers want, using all available resources, then this mix of goods is

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both productively and allocatively different

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trade can be beneficial to an economy because

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more goods and services can be obtained at a lower opportunity cost.

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if the opportunity cost of manufacturing automobiles is lower in the US than in Britain and the opportunity cost of manufacturing airplanes is higher in the US than in Britain, then the US will

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import airplanes from Britain and export automobiles to Britain

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if LeRoyce trades two cookies for one of Amir's brownies, we say that they are engaging in

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barter

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goods and services purchased from abroad are

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imports

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goods and services sold abroad are

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exports

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taken collectively, people in nations that engage in international trade are not likely to

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be made worse off

macroeconomics test #1 – Flashcards

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