Final Macroeconomics

Interest income is a factor payment to:

capital

Scarcity is an issue confronted by:

everyone

The term ________ refers to a group of buyers and sellers that are engaged in mutual beneficial exchanges.

exchange and trade

Productive efficiency is achieved when

firms produce goods and services at the lowest cost

The production possibilities curve illustrates the fact that

if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.

Wage income is a factor payment to

labour

The production possibilities frontier shows ________ combinations of two products that may be produced in a particular time period with available resources.

maximum attainable

Which of the following is an example of a public good or service? a. a television set b. a soda c. national security d. none of the above

national security

The two main characteristics of a public good are

nonrivalry and non excludability

The two main characteristics of a private good are:

rivalry and exclusive in consumption or use

The basic economic problem of ________ has always existed and will continue to exist.

scarcity

Allocative efficiency is achieved when firms produce goods and services

that consumers value most