Macroeconomics Unit 1, 2, 3 Exam – Flashcards
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Being "rational" means being able to clearly understand A) what one needs, and B) __________ in gaining the fulfillment of each need.
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Reality of the Cost
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Ecological balance is the goal that assumes ________ can achieve balanced economic conditions while maintaining a sustainable, living, planet.
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The Global Economy
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The term "Allocation" means how we ________ to spread our limited resources over some variety of different projects.
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Choose
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The freedom to make purchases as desired and to work and live independent of extensive controls by ___________ is a basic cultural value in a free market society.
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The Government
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____________ analyzes how we choose to use our resources on an aggregate (national) level and includes measure of performance such as inflation unemployment, and federal government expenditures.
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Macroeconomics
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In the Product Markets of the Circular Flow Model, Households provide ________ to the Business sector in exchange for Goods and Services
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Consumption Spending
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The "marginal utility" of CHOOSING to go to a particular concert is the additional _______________ that is gained.
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Benefit
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The ______________ of Economics are the generally accepted theories about resource allocation.
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Principles
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A real cost of CHOOSING to attend a concert is not only the out-of-pocket cost, but also the "opportunity cost" (lost wages or maybe extra sleep) Every activity we undertake requires us to ___________ pursue other opportunities.
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Not
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A balance of responsibilities taken on by all people in each sector of the economy results in ______________ (equity) for all people
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Fairness of Opportunity
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The goal of "Growth" is to increase the _________ (adjusted to not include inflation) value of GDP in an economy
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Real
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In the Resource (or Factor) Markets of the Circular Flow Model, Households provide ___________ to the Business sector in exchange for interest.
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Capital
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Economists are ______________ (Concerned with human behavior and cultural values) who seek to optimize the allocation of scarce resources toward the maximum satisfaction possible for individuals, communities, and entire societies.
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Social Scientists
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Over a reasonable period of time a nation must CHOOSE to balance its trade within the __________ in order to prosper.
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Global Markets
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The amount of emphasis placed on each "Macroeconomic Goal" is determined by the ____________ in a society.
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Cultural Values
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The balance of trade is the difference between the monetary cost of the ______________ that a nation exports and the monetary cost of what it imports.
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Goods and Services
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The description of an economy by stating Facts if called ______________
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Positive Economics
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______________ is the goal of economics seeking to allocate resources so that an economy does not experience high inflation.
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Price Stability
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If you, as an individual, conclude that doubling your pay check is a good thing for you, then it must be a good thing for the entire society. True or False. What is it called?
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False; Fallacy of Composition
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The statement, "According to a government reports, the inflation rate is 1%, is a __________ statement.
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Positive Economic
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Part of the Economic Problem is that resources are ___________. That is, we have a fixed amount of these available at any one time.
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Limited
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The process of production is determined by the ___________ which are the economic resources used for creating output
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Factors of Production
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What are the Factors of Production?
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Land, Labor, Capital, Entrepreneurial Skill
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Name the Missing Determinant: Tastes and Preferences Number of Buyers Level of Income Price of Related Goods
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Consumer Expectations
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Name the Missing Determinant: Number of Buyers Level of Income Price of Related Goods Consumer Expectations
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Tastes and Preferences
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Name the Missing Determinant: Tastes and Preferences Level of Income Price of Related Goods Consumer Expectations
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Number of Buyers
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Name the Missing Determinant: Tastes and Preferences Number of Buyers Price of Related Goods Consumer Expectations
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Level of Income
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Name the Missing Determinant: Tastes and Preferences Number of Buyers Level of Income Consumer Expectations
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Price of Related Goods
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Name the Missing Supply Determinant: Number of Producers Production Substitute Future Prices Taxes or Subsidies Technology
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Resource Costs
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Name the Missing Supply Determinant: Resource Costs Production Substitute Future Prices Taxes or Subsidies Technology
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Number of Producers
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Name the Missing Supply Determinant: Resource Costs Number of Producers Future Prices Taxes or Subsidies Technology
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Production Substitute
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Name the Missing Supply Determinant: Resource Costs Number of Producers Production Substitute Taxes or Subsidies Technology
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Future Prices
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Name the Missing Supply Determinant: Resource Costs Number of Producers Production Substitute Future Prices Technology
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Taxes or Subsidies
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Name the Missing Supply Determinant: Resource Costs Number of Producers Production Substitute Future Prices Taxes or Subsidies
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Technology
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Adam Smith explained that the purpose of Government was to facilitate the market, and therefore, it should have a very __________ role in an efficient market
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Limited
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Any point inside the frontier describes an economy with _________ of one or more of the four basic resources
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Under-Employment/Unemployment
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___________ is when a resource is not fully utilized, such as when your Economics professor has to sweep the streets as a primary job
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Under-Employment
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If all of the units produced are "fast food cheeseburgers", then the cheeseburger itself is a ___________ (as opposed to the "service" being "fast".... or not)
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Good
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Thomas Malthus did not take into account the role of ________
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Technology and Systems Changes
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Under-Employment is when a resource is not fully utilized, such as when
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An office building stands 80% empty A computer network runs at only 50% of capacity
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____________ efficiency is gaining the most output to maximize consumer utility with a given amount of input
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Economic
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All production involves the human resource called ___________
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LABOR
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Consumption Goods will be divided up among the Households according to their income in a ___________ based economy
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Market
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The transition away from Traditional and Autocratic systems began as the manor life yielded to the city life in the 17th and 18th centuries in __________
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Europe
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The ability of people to conceive an idea (innovate), bring together resources, and take the risk when starting a business are all part of _______________
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Entrepreneurship
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A shift in a PPC/PPF to the right (or outward) illustrates Growth which may be generated by _____________ (better utilizing existing resources) or by acquiring more resources over time.
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Improved Technology
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In America during the early 1900's ___________________ became an economic force as the role of worker became fundamental for economic growth.
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Labor Unions
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__________ argued that capitalism would lead to socialism and then to communism as armies of unemployed workers would force economic change
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Karl Marx
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The ________________________________ assumes that a nation has only two goods and they are graphed with varying combinations along the X and Y axis.
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Production Possibilities Curve/Frontier
