Macroeconomics: (HW-CH 1-4) and (Quizzes 1&2&3) Exam Questions With Verified Answers.
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Course
Microeconomics
Institution
Microeconomics
Macroeconomics: (HW-CH 1-4) and (Quizzes
1&2&3) Exam Questions With Verified
Answers.
HW-CH1
The definition of economics states that it is the study of how _________. - answeragents
choose to allocate scarce resources and the impact of those choices on society.
HW-CH1
The statement that the ...
Macroeconomics: (HW-CH 1-4) and (Quizzes
1&2&3) Exam Questions With Verified
Answers.
HW-CH1
The definition of economics states that it is the study of how _________. - answer✔✔agents
choose to allocate scarce resources and the impact of those choices on society.
HW-CH1
The statement that the United States has a budget deficit that is in excess of $ 15 trillion is a
__________ statement since it describes what people
actually do.
The statement that the United States should legalize same-sex marriage is a ___________
statement since it describes what people
ought to do.
The ethical implications of a hotly debated government policy would best be considered a
_________. - answer✔✔positive
normative
normative question, since it deals with a subjective issue based on personal preferences.
HW-CH1
Economics is divided into two broad fields of study: microeconomics and macroeconomics.
Microeconomics studies _________, while macroeconomics studies _________.
Policy decisions made by the government are analyzed by _________.
A policy such as those limiting a firm's monopoly powers would be studied under _________,
since it deals with ___________. - answer✔✔a small piece of the overall economy;
the economy as a whole.
both microeconomics and macroeconomics.
microeconomics ;
a small part of the overall economy
HW-CH1
The three principles of economics include optimization, equilibrium, and empiricism.
Equilibrium describes a situation where _________________.
Empiricism describes a situation where __________________.
Optimization describes a situation where _____________. - answer✔✔no one would benefit
from changing his or her behavior.
economists use data to analyze what is happening in the world.
people weigh costs and benefits when making a decision.
HW-CH1
Economics, anthropology, psychology, sociology, and political science all study human
behavior.
When making your decision about which activity to choose, you should consider the monetary
cost_______ the opportunity cost of the activities. The goal is to choose the option that offers the
greatest ____________. - answer✔✔Do a cost-benefit analysis to compare the alternatives.
as well as; net benefit.
HW-CH1
During the process of optimization economists believe that people are considering _________.
The goal of optimization for an individual is to maximize ______________. - answer✔✔the
feasibility of a choice, given the information available at the time.
overall well-being
HW-CH1
Suppose that you allocate $20 each week for your entertainment budget. This money is spent on
two items: either renting movies for $1 each at Redbox or downloading songs from iTunes at $1
each.
Given this information, which of the following would represent your budget constraint for
entertainment?
Your budget constraint for entertainment illustrates the concept of _________________, since as
you increase your purchases of one item, you __________________. - answer✔✔Amount spent
on iTunes + Amount spent at Redbox = $20.
trade-offs; must decrease your purchases of the other item
Let's say that you are trying to decide what to do on Friday at 11 a.m. You rank your possible
options from the one you value the most to the one that you value the least in the following
order: going to class, sleeping in late, going to work early, getting lunch, going to the gym to
exercise, and watching television.
If you decide to go to class, then what do we know about the opportunity cost of your decision? -
answer✔✔what is given up
The opportunity cost would be sleeping in late, since it was your next-best option.
HW-CH1
Comparing a set of feasible alternatives and picking the best one is an optimization process
called _________.
When deciding whether to install visible countdown timers for pedestrians at crosswalks, which
of the following would be considered in the cost-benefit analysis? (Check all that apply.) -
answer✔✔cost-benefit analysis.
A.) The value of the lives lost by drivers who watch the countdown timers and try to make it
through a light.
B.) The cost in terms of dollars of installing these new timers all over the city.
C.) The value of the pedestrians' lives saved by having the timers to assist in crossing the street.
D.)The higher maintenance bill associated with fixing these more complex signals when they
break down.
HW-CH1
Free riding occurs when ________________ are out of sync with _______________.
Which of the following is subject to the free-rider problem?
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