Microeconomics Module 1

Module 1

Question 16

Module 1

Question 17

Which of the following questions would not be studied by a microeconomist but would be studied by a macroeconomist?

Why do national economies grow?

Ceteris paribus means:

all other things remain constant.

Measured between two points on a curve, the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the:

slope.

Microeconomics is concerned with:

some specific market in the economic system.

People are forced to make choices because of:

unlimited wants and limited resources.

A horizontal line has an infinite slope.

False

Factors which determine the price of corn would be studied in macroeconomics.

False

Policies to determine the price of troll dolls are a concern of macroeconomics.

False

Policies to increase the supply of money in the economy are primarily a concern of microeconomics.

False

An economic model is defined as:

a simplified representation of the way in which facts are related.

The silly clothes worn by a circus clown are an example of:

capital goods.

The subject of economics is primarily the study of:

decision-making because of the problem of scarcity.

Policies to lower the price level of goods in the nation are a concern of:

macroeconomics.

The sub-discipline of economics that focuses especially on individual markets is:

microeconomics.

An economic theory claims that a rise in gasoline prices will cause gasoline purchases to fall, Ceteris paribus. The phrase "Ceteris paribus" means that:

other relevant factors like consumer incomes must be held constant.

An entrepreneur is:

the person who conceives and starts a business.