The study pf a single firm and how it determines prices would fall under the study of:
Microeconomics
Macroeconomics deals with
the working of the entire economy or large sectors of it.
Scarcity in economics means:
We do not have sufficient resources to produce all the goods and services we want
Scarcity exists when:
individuals can have more of one good but only at the expense of another.
The problem of determining what goods and services society should produce:
exists because there are not enough resources to provide all of the goods and services that people want to purchase.
Which of the following can best be considered the resources used in the production of computers?
computer engineers
Opportunity cost is:
the value of the best alternative forgone in making any choice.
If the state government allocated additions spending on education. the opportunity cost is:
measured in terms of the best alternative uses for that money.
The best measure of the opportunity cost of any choice is:
whatever you have given up to make that choice, even is no monetary cost are involved.
For which of the following decision would margin analysis be most relevant?
Should i eat another doughnut?
Marginal analysis studies how individuals decide:
whether to do a bit more activity versus a bit less activity
Which of the following policies is most likely to reduce traffic congestion in a large metropolitan ares?
a toll road that requires each car to pay a fee to enter the city center.
which of the following is NOT true?
Resources are scare when they can satisfy everyones want.
Increases in total output realized when individuals specialize in particular tasks and trade are known as:
the gains from trade.
Individuals gain from trade because:
of specialization in production
A trade off between equity and efficiency may exist because of all of the following except that:
allocating resources fairly may cause efficiency.
Resources are being used efficiently when:
every opportunity to make people better off has been utilized.
In most cases, economic efficiency is achieved through
incentives built into a market economy.
A market failure occurs when:
the individuals pursuit os self-interest makes the society worse off.
When a local factories closes, why does it spell bad news of the local restaurants?
Unemployed factory workers have lower incomes and are less likely to dine out.
Sometimes the government spends more or less, depending on the news of the country. This statement best represents this economic concept:
Government policies can change spedingd
All children have to be immunized against polio, measles, mumps, and other disease. If you do not have enough money to pay for the immunizations, they will be provided free at the county health clinic. This statement represents this economic concept:
When markets don't achieve efficiency, government intervention can improve society welfare.
If government decided to increase taxes or decrease its spending, most likely this was to correct:
inflation
people who live in large cities decide to spend less in their day to day actives. as a result, this will most likely lead to:
less income for other people in the economy.
Suppose a local community decided to give all of its citizens over age 60 a parking pass that would enable the to park in the very front of parking lots. for people over 60, this policy is:
equitable but not efficient, since it applies to all citizens over 60.