ECON CHAPTER 1

_________________ - 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. A. Economies of scale B.Skill C.Specialization D.Division of labor

A

Macroeconomic topics do not usually include: A.the profit maximizing decisions of an individual manufacturer. B.economic growth C.the rate of inflation D.the rate of unemployment

A

In a ______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers. A.microeconomy B.market-oriented economy C.command economy D.macroeconomy

B

In countries like _________________ the command economy predominates. A.South Africa and Kenya B.Cuba and North Korea C.Germany and France D.China and Vietnam

B

Which of the following best describes a monetary policy tool? A.taxes B.interest rates C.household savings D.government spending

B

Which of the following is most likely a topic of discussion in macroeconomics? A.an increase in the price of a hamburger B.a decrease in the unemployment rate C.a decrease in the production of DVD players by a consumer electronics company D.an increase in the wage rate paid to automobile workers

B

The circular flow diagram of economic activity is a model of the : A.role of unions and government in the economy. B.influence of government on business behavior. C.interaction among taxes, prices, and profits. D. flow of goods, services, and payments between households and firms.

D

In a command economy, the ________________either makes most economic decisions itself or at least strongly influences how the decisions are made. A.market B.firm C.business sector D. government

D

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of: A.producers and government planning committees. B.producers and input suppliers C.all consumers D.buyers and sellers

D

Macroeconomics: A.is concerned with the expansion of a small business into a large corporation B.is narrower in scope than microeconomics Analyzes mergers and acquisitions between firms D.is concerned wit the expansion and contraction of the overall economy.

D