Micro Chap 1 Test Questions – Flashcards
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The opportunity cost of lost wages from keeping her store open.
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Marlene decided to close down her retail clothing store and go back to work for a large corporation. Her decision was based on the fact that she would make more money in her old job. Marlene's decision factored in
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Macroeconomics is the study of the economy as a whole which includes topics such as unemployment, economic growth and inflation.
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Which of these covers the study of topics such as inflation and unemployment?
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If minimum wage rates rise, then unemployment will rise.
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Which of the following is a positive economic statement?
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better off after the transaction occurs
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The principle of voluntary exchange state that if two people voluntarily agree to a transaction they are both:
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allocative efficiency
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A situation where the quantities and mix of goods and services produced is equivalent to those demanded by consumers is known as:
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The study of how fast prices in general are rising
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Which of these is a macroeconomic study?
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simplifications of reality that focus only on key relationships and ignore less relevant details
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Economic models are:
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When marginal benefit is less than marginal cost
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When is output higher than the efficient level?
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marginal benefit equals marginal cost
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The optimal economic decision is to continue any activity, investing or otherwise, up to the point where:
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The level of output where marginal benefit is equal to marginal cost.
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When a competitive market is in equilibrium, what is the economically efficient level of output?
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political party affiliation
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Macroeconomics is concerned with all of the following except:
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receives benefit from a good without paying for the good
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A free rider is a person who:
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is concerned with how people respond to incentives
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Economics:
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evaluate the marginal cost and marginal benefit of that decision.
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One of the first steps in deciding whether to complete your education is to:
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scarcity
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Economics is the study of choice under conditions of:
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The cost of housing
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Which of the following is not an opportunity cost of attending college?
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inflation
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A sustained increase in the overall level of prices is known as:
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Microeconomics
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__________ is the study of how households and businesses make choices, how they interact in markets, and how government influences their choices.
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When marginal benefit is greater than marginal cost
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When is output lower than the efficient level?
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budget constraint
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The limited amount of income available to consumers to spend on goods and services is known as the:
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a normative statement
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If the president of Columbia commented that "we should do something to reduce inflation in Columbia," this would be an example of:
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how a consumer decides between the purchase of two different cars
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Macroeconomics can be used to understand all of the topics listed below, except:
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marginal analysis
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Decision analysis that involves comparing marginal costs and marginal benefits to determine the best course of action is known as:
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scarcity
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The principle of opportunity cost evolves from the concept of:
