low inflation correct answers When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being:
flow of goods, services, and payments between households and firms. correct answers The circular flow diagram of economic activity is a model of the:
goods and se...
HCM 402 MIDTERM || Already Passed.
low inflation correct answers When nations desire a healthy macroeconomy, they typically focus
on three goals, one of these being:
flow of goods, services, and payments between households and firms. correct answers The
circular flow diagram of economic activity is a model of the:
goods and services market correct answers In the ______________, households receive goods
and services and pay firms for them.
The basic difference between macroeconomics and microeconomics correct answers
microeconomics is concerned with the trees (individual markets) while macroeconomics is
concerned with the forest (aggregate markets).
a command economy correct answers Which of the following best denotes the reason for the
existence of substantial black markets?
Economies of scale correct answers a term referring to the fact that for many goods, as the level
of production increases, the average cost of producing each individual unit declines.
division of labor correct answers In the first chapter of The Wealth of Nations, Smith introduces
the idea of the __________, which means the way in which the work required to produce a good
or service is divided into a number of tasks that are performed by different workers.
The basic difference between macroeconomics and microeconomics correct answers
microeconomics concentrates on the behaviour of individual consumers and firms while
macroeconomics focuses on the performance of the entire economy.
interest rates correct answers Which of the following best describes a monetary policy tool?
labor market correct answers In the ____________, households work and receive payment from
firms.
the profit maximizing decisions of an individual manufacturer. correct answers Macroeconomic
topics do not usually include:
Specilization correct answers can lead to an increase in overall production.
economy correct answers Regardless of whether you are looking through the microeconomics
microscope or the macroeconomics telescope, the fundamental subject material of the
interconnected __________ doesn't change.
Decrease in unemployment rate correct answers Which of the following is most likely a topic of
discussion in macroeconomics?
, buyers and sellers correct answers In a market-oriented economy, the amount of a good that is
produced is primarily decided by the interaction of:
is not using its resources efficiently correct answers At Point A in the production possibilities
graph shown above, the economy
budget constraint correct answers The slope of the _________________ is determined by the
relative price of the two goods, which is calculated by taking the price of one good and dividing
it by the price of the other good.
utility correct answers The general pattern that consumption of the first few units of any good
tends to bring a higher level of _______ to a person than consumption of later units is a common
pattern.
all points correct answers Along the production possibilities frontier, the most efficient point of
production depicted is:
marginal thinking correct answers choosing to spend one more hour studying economics because
you think the improvement in your score on the next quiz will be worth the sacrifice of time.
point G correct answers The most inefficient point depicted is:
Because our unlimited wants exceed our limited resources correct answers Why is there scarcity?
scarcity correct answers it is impossible to completely fulfill the unlimited human desire for
goods and services with the limited resources available.
allocative efficiency correct answers The choice on a production possibilities set that is socially
preferred, or the choice on an individual's budget constraint that is personally preferred, will
display
sunk cost correct answers The lesson of __________ is to forget about the money that's
irretrievably gone and instead to focus on the marginal costs and benefits of future options.
Utility correct answers In deciding how many hours to work, Beulah will make a choice that
maximizes her _______; that is, she will choose according to her preferences for leisure time and
income.
opportunity set correct answers The model that economists use for illustrating the process of
individual choice in a situation of scarcity is the budget constraint, sometimes also called the
_______________, a diagram which shows what choices are possible.
positive statements correct answers Philosophers draw a distinction between
___________________, which describe the world as it is, and normative statements, which
describe how the world should be.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.69. You're not tied to anything after your purchase.
