Exam 1: What Economics Is About

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What is the difference between macroeconomics and microeconomics? Give an example of a question that a macroeconomist might be interested in answering, then do the same for a microeconomist.

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Question 1

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Macroeconomics is the branch of economics that looks at human behavior and choices as they relate to the entire economy. Microeconomics deals with human behavior and choices as they relate to relatively small units ---an individual, a firm, an industry, a single market. A macroeconomist would be concerned about questions that impact the whole economy such as, "How will the proposed tax cut affect unemployment, inflation and economic growth?" A microeconomist would ask questions that relate to the various parts that make up the economy such as, "How will the drought impact the price of corn?"

The the opportunity cost of doing an activity, the .

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In most societies, dollar price acts as the main rationing device. If dollar price weren't the main rationing device, would there still be a need for some rationing device to take its place?

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Which of the following would NOT be considered a macroeconomic topic?

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Question 4

Economists use the terms resource and input as synonyms.

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Question 5

Scarcity is defined as the condition in which

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Question 6

In general, there is a ______________ relationship between the number of hours spent studying for a test and the grade earned on the test.

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Question 7

If variable X rises as result of variable Y falling, then X and Y are

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Question 8

Making a decision at the margin is __________ an all-or-nothing decision.

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Question 9

The higher the opportunity cost of doing something, the more likely it will be done.

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Question 10

Which of the following statements is true?

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Question 11

Variables A and B are inversely related. If we plot A on the horizontal axis and B on the vertical axis, the line that connects combinations of A and B plotted in a two-variable diagram would be

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Question 12

Economists believe that people's wants are

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Question 13

The synonym economists commonly use for additional is

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Question 14

Economists use the ceteris paribus assumption primarily in order to

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Question 15

In economics, a synonym for utility is

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Question 16

Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities.

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Question 17

Several years ago, a bookstore chain extended its closing time from 9 p.m. to 10 p.m. Now it is considering a further extension to 11 p.m. In making this marginal decision, the results of having gone from 9 p.m. to 10 p.m. are

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Question 18

The purpose of the ceteris paribus assumption is to allow economists to

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Question 19

The primary economic reason why people cannot have everything they want is because

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Question 20

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Exam 1: What Economics Is About

What is the difference between macroeconomics and microeconomics? Give an example of a question that a macroeconomist might be interested in answering, then do the same for a microeconomist.

The __________ the opportunity cost of doing an activity, the __________.

In most societies, dollar price acts as the main rationing device. If dollar price weren't the main rationing device, would there still be a need for some rationing device to take its place?

Which of the following would NOT be considered a macroeconomic topic?

Economists use the terms resource and input as synonyms.

Scarcity is defined as the condition in which

In general, there is a ______________ relationship between the number of hours spent studying for a test and the grade earned on the test.

If variable X rises as result of variable Y falling, then X and Y are

Making a decision at the margin is __________ an all-or-nothing decision.

The higher the opportunity cost of doing something, the more likely it will be done.

Which of the following statements is true?

Variables A and B are inversely related. If we plot A on the horizontal axis and B on the vertical axis, the line that connects combinations of A and B plotted in a two-variable diagram would be

Economists believe that people's wants are

The synonym economists commonly use for additional is

Economists use the ceteris paribus assumption primarily in order to

In economics, a synonym for utility is

Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities.

Several years ago, a bookstore chain extended its closing time from 9 p.m. to 10 p.m. Now it is considering a further extension to 11 p.m. In making this marginal decision, the results of having gone from 9 p.m. to 10 p.m. are

The purpose of the ceteris paribus assumption is to allow economists to

The primary economic reason why people cannot have everything they want is because

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages, Union, and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Filters

The the opportunity cost of doing an activity, the .