Principles of Macroeconomics
Why, if at all, is the ceretis paribus condition important in economic analysis?
Allows analysis of how a single change
Please select the economic term that is best described by each statement.
People have limited resources.- scarcity Everything you do requires giving up something- Tradeoffs
Classify each statement based on whether or not it is a primary goal of macroeconomic policy.
Primary- low unemployment, low inflation, growth in standard of living Not primary- politics, optimal price for pound, calculate how much urban residents
consider the statements. indicate whether each statement falls mainly under the field of microeconomics or macroeconomics.
Tax on tires- Micro Severe recession- Macro Increased consumer spending- Macro Spending causing inflation rise- Macro Optimism about the future- Micro Robotic technology- Micro
Determine if the items represent an example of positive economics or normative economics.
The richest 11% of Americans should pay more taxes than the rest of the 9999%.- Normative A decrease in the supply of coconut will increase the price of German chocolate cake, a good which requires coconut shavings as a key ingredient.- Positive As minimum wage increases, the prices of all goods and services also tends to increase.- positive Social welfare spending in Sweden occupies too large a portion of the national budget.- Normative
Which statement describes the equity-efficiency trade‑off?
actions intended to make economic outcomes fairer can cause efficiency to decrease
Suppose the schools sells all of its vaccines at the $20 market price. what has it managed to maximize?
efficiency
Suppose now the school wishes to make sure no students with diabetes or asthma go without. The school is now seeking a greater degree of
fairness
During the summer, the largest computer game retailer has a massive sale. As prices for computer games fall, consumers purchase more games, ceretis paribus. What does ceretis paribus mean in context?
holding all else equal
Megan has a 1 hour gap in her course load for fall semester. Identify which activity exhibits a potential trade-off when enrolling in rock climbing
learning to read piano sheet music
Who will receive the vaccine if the university sells them for the $20 market price
the students who will pay $20 for them
