Exam 1: Introduction to Key Ideas

The tuition fee at a given university is a microeconomic issue.

Investments in physical capital and investments in education helped China to attain high economic growth rates in the recent past.

-The opportunity cost of moving from point G to point D in Figure 1.1 is equal to:

Macroeconomics differs from microeconomics in that:

Which of the following would not promote economic growth within a society?

In order to properly ignore opportunity costs, the value of the next-best alternative and therefore all alternatives would have to be:

Macroeconomics is described best by which of the following statements?

The study of individuals' decision-making about particular commodities is:

The problem of scarcity is present in some form or another:

Class attendance today is nearly 100% but on most other days it is less. The likely explanation for this would be:

Economists believe that incentives are the only motivating force in society.

Economists believe that incentives form a central part of the modern mixed economy.

To say that markets are free means that:

The question of how society's output is to be distributed among its citizens must be answered:

Any point beyond the production possibilities frontier:

All social systems face the problem of economic scarcity, and this problem arises primarily from the fact that:

When an economic system answers the "for whom" question, it affects the distribution of total output.

The study of how society decides what, how, and for whom to produce is the study of:

Economic thinking frequently involves a 'marginalist' approach. What does this mean?

An important idea in the definition of economics is that the economics teaches an individual how to operate efficiently and make money.