Chapter 1
Additional gain from on more unit of an activity
the marginal benefit is the
about what ought to be
A normative statement is
Could either be a reward or a penalty
An incentive
an incentive
An inducement to take a particular action is called
"how"
As art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ______ part of one of the two big economic questions
an hour of sleep given up
Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is
own all the other resources used in the production process
Entrepreneurs do all of the following except
entrepreneurship
Human resources that perform the functions of organizing, managing, and assembling the other resources are called
microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy
In broad terms the difference between microeconomics and macroeconomics is that
Macroeconomics focuses on the national economy and the global economy
Macroeconomics differs from microeconomics in that
Total, Nationwide employment
Macroeconomics topics include
deciding to do a little bit more or a little bit less of an activity
Making a choice at the margin means
Brand B or Brand C, depending on which is considered the highest- value alternative forgone
Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each cost ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is
Arises from the fact that our wants exceed available resources
The Study of economics
macroeconomics
The branch of economics that deals with the analysis of the whole economy is called
entrepreneurship
The economic resource that organizes the use of other economic resources is called
"for whom"
The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions
Scarcity
The fact that wants cannot be fully satisfied with available resources reflects the definition of
Capital; interest
The income earned by the people who sell the services of the factor of production _____ is called ______
More students should study economics
The statement that ______ is a positive statement
microeconomics
The study of the decisions of individual units in the economy is known as
"What"
When a country decides to produce fewer bombers and more public housing projects, it is answering the ____ part of one of the two big economic questions
"What"
When a farmer decides to raise hogs instead of cattle, the farmer is answering the ______ part of one of the two big economic questions
Opportunity cost
When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of
Instruments, machines, and buildings used in production
Which of the following best defines capital as a factor of production
100 shares of Microsoft stock
Which of the following is NOT a factor of production?
How federal government budget deficits affect interest rates
Which of the following is a macroeconomic issue?
an alternative action will be selected
if the marginal cost of an activity exceeds the marginal benefit, then
cost of an increase in an activity
marginal cost is the