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macroeconomics test #1 – Flashcards

Darryl Wooten

7 July 2022

question

macroeconomics deals with

answer

the working of the entire economy

question

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

question

the basic concern of economics is

answer

to study the choices people make

question

water is considered a scarce good because

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

question

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

answer

scarce resources

question

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

answer

labor

question

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

answer

the new blu-ray player

question

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

answer

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

question

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

answer

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

question

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:

answer

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

question

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:

answer

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

question

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

answer

increasing the fine associated with speeding tickets

question

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

answer

offer lower tuition to in-state students

question

which of the following is an example of individual choice

answer

lauren spends her allowance on pillows for her bed

question

which of the following statements is a normative statement

answer

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

question

which of the following is and example of normative economics

answer

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

question

which of the following would be a positive economic statement

answer

there has been an increase in the rate of inflation

question

which of the following is an example of a positive statement

answer

the poverty rate is 4%

question

statements that make value judgments are

answer

normative

question

which of the following is an example of a normative statement

answer

everyone in america deserves to be covered by national health insurance

question

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

answer

is positive

question

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

answer

a positive economic statement

question

a normative statement deals with

answer

what ought to be

question

an economist that studies the macro economy is most concerned with

answer

the rise and fall of national income

question

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

answer

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

question

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

answer

land

question

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

answer

a model

question

recessions are periods when

answer

output and employment are falling

question

a business cycle is

answer

a short run alteration between economic upturns and downturns

question

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

answer

expansion

question

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

answer

the unemployment rate

question

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

answer

recession

question

economic expansion is typically associated with which statistic

answer

a falling unemployment rate

question

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

answer

expansion

question

the sequence of business cycle phases is

answer

business cycle peak, recession, business cycle trough, expansion

question

in macroeconomic

answer

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

question

during a recession, one will often observe

answer

unemployment rates increasing while aggregate output is falling

question

when economists measure economic growth, they often use

answer

long term changes in the maximum possible output in the economy

question

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

answer

considered to be a recession

question

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

answer

inflation

question

a typical expansion in the business cycle is detected by

answer

falling unemployment rates and rising aggregate output

question

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

answer

increasing opportunity cost

question

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

answer

both productively and allocatively different

question

trade can be beneficial to an economy because

answer

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

question

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

answer

import airplanes from Britain and export automobiles to Britain

question

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

answer

barter

question

goods and services purchased from abroad are

answer

imports

question

goods and services sold abroad are

answer

exports

question

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

answer

be made worse off

1 of

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question

macroeconomics deals with

answer

the working of the entire economy

question

the primary emphasis in macroeconomics is on

answer

the national economy

question

scarcity in economics means

answer

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

question

the basic concern of economics is

answer

to study the choices people make

question

water is considered a scarce good because

answer

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

question

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

answer

scarce resources

question

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

answer

labor

question

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

answer

the new blu-ray player

question

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

answer

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

question

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

answer

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

question

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:

answer

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

question

answer

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

question

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

answer

increasing the fine associated with speeding tickets

question

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

answer

offer lower tuition to in-state students

question

which of the following is an example of individual choice

answer

lauren spends her allowance on pillows for her bed

question

which of the following statements is a normative statement

answer

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

question

which of the following is and example of normative economics

answer

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

question

which of the following would be a positive economic statement

answer

there has been an increase in the rate of inflation

question

which of the following is an example of a positive statement

answer

the poverty rate is 4%

question

statements that make value judgments are

answer

normative

question

which of the following is an example of a normative statement

answer

everyone in america deserves to be covered by national health insurance

question

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

answer

is positive

question

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

answer

a positive economic statement

question

a normative statement deals with

answer

what ought to be

question

an economist that studies the macro economy is most concerned with

answer

the rise and fall of national income

question

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

answer

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

question

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

answer

land

question

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

answer

a model

question

recessions are periods when

answer

output and employment are falling

question

a business cycle is

answer

a short run alteration between economic upturns and downturns

question

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

answer

expansion

question

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

answer

the unemployment rate

question

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

answer

recession

question

economic expansion is typically associated with which statistic

answer

a falling unemployment rate

question

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

answer

expansion

question

the sequence of business cycle phases is

answer

business cycle peak, recession, business cycle trough, expansion

question

in macroeconomic

answer

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

question

during a recession, one will often observe

answer

unemployment rates increasing while aggregate output is falling

question

when economists measure economic growth, they often use

answer

long term changes in the maximum possible output in the economy

question

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

answer

considered to be a recession

question

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

answer

inflation

question

a typical expansion in the business cycle is detected by

answer

falling unemployment rates and rising aggregate output

question

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

answer

increasing opportunity cost

question

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

answer

both productively and allocatively different

question

trade can be beneficial to an economy because

answer

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

question

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

answer

import airplanes from Britain and export automobiles to Britain

question

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

answer

barter

question

goods and services purchased from abroad are

answer

imports

question

goods and services sold abroad are

answer

exports

question

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

answer

be made worse off

macroeconomics test #1 – Flashcards

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