Macro ch 1

2.) Consider the statement Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics. Increased consumer spending causes the national unemployment rate to fall

2 Macroeconomic

2.) Consider the statement Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics. As a result of a severe recession, the total output, or gross domestic product, of a nation falls by 4%

2 Macroeconomics

Kivalliq Business Development Centre offers assistance to individuals interested in starting and growing businesses in Nunavut. Suppose they sponsor a business plan competition, offering a $10,000 prize to the entrepreneur who develops the best business plan. The $10,000 prize is an example of

An Incentive

Ava finds that there is not enough time after work to have dinner, exercise, and watch TV, and she must make choices about how to use her limited time. A.)opportunity cost B.)marginal decisions C.)resource scarcity

C.)resource scarcity

Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. How much less economic output occurs countrywide because workers call in sick to stay home and play either "Call of Obligation" or another video game?

1 Macroeconomic

Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. Have millions of dollars that people have spent on video games worldwide affected the gross domestic Product (GDP) in their respective countries?

1 Macroeconomics

Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. How does Ultravision choose to market "Call of Obligation"?

1 Microeconomics

2.) Consider the statement Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics. A tax on tires increases the price of tires paid by car owners

2 Microeconomics

Which statement describes the equity-efficiency trade‑off? A.)The least efficient economic outcome is the fairest outcome. B.)Actions intended to make economic outcomes fairer may cause efficiency to decrease. C.)There is always a more equitable outcome that is also more efficient. D.)Government intervention can increase efficiency in a market.

B.)Actions intended to make economic outcomes fairer may cause efficiency to decrease.

An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. The company compares how much adding another worker will improve the product to the additional cost. A.)opportunity cost B.)marginal decisions C.)resource scarcity

B.)marginal decisions

Nunavut has no trees but plenty of fisheries and gold mines. Nunavut residents would like to improve their lot and gain access to more goods and services. What could help them accomplish their goal? They could A.)hire soil experts to enhance agricultural productivity. B.)specialize in mining and fisheries and engage in trade. C.)plant more trees and sell them abroad. D.)allow fishermen to trade with gold miners.

B.)specialize in mining and fisheries and engage in trade.

Specialization leads to gains for: A.) only the seller in a transaction. B.) only the buyer in a transaction. C.) both the buyer and the seller involved in a transaction. D.) neither the buyer or seller in a transaction, but the government that is authorizing the transaction.

C.) both the buyer and the seller involved in a transaction.

4. Which of the following statements is true of incentives? A.)People respond to financial incentives only. B.)People respond to good incentives but ignore bad incentives. C.)Rules can be established to prevent people from acting on certain incentives. D.)Stealing is an outcome of a response to a good incentive.

C.)Rules can be established to prevent people from acting on certain incentives.

Everything you do requires giving up something (time, money, etc.). recession A.)financial capital B.)budgeting C.)tradeoffs D.)margins E.)scarcity

C.)tradeoffs

Which of the following statements is true of markets? A.)Government intervention in markets should always be avoided. B.)There are no disadvantages of having free markets. C.)Markets discourage competition among firms. D.)Free markets sometimes fail to produce best results for society, but such failure can be reduced by government intervention.

D.)Free markets sometimes fail to produce best results for society, but such failure can be reduced by government intervention.

Nunavut Arctic College offers programs in health, education, law, culture, arts, and business. They also offer five categories of apprenticeship programs to prepare interested individuals for jobs in specific trades. Of these apprenticeship programs, one is in the field of carpentry and another is in the field of housing maintenance. There are no trees in Nunavut. Why would Nunavut Arctic College offers apprenticeships in carpentry and house maintenance? a. The scarcity of lumber means that the opportunity cost of repairing and maintaining items made with lumber in Nunavut is _________ than the opportunity cost of purchasing new items made with lumber.

Less

Classify each statement based on whether or not it is a primary goal of macroeconomic policy. Primary Macro Economic policy Goal

Low Unemployment Low Inflation Growth in the Standard of Living

2.) Consider the statement Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics. Robotic technology reduces the demand for auto workers

Microeconomics

2. Opportunity cost is the value of the: A.) best alternative which is given up when a decision is made. B.) alternative that is selected when a decision is made. C.)alternative that is selected and the next best alternative. D.)worst alternative available to the decision maker.

A.) best alternative which is given up when a decision is made.

Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. Has the country's unemployment rate changed as Ultravision hired a huge team of workers to develop the game

1 Macroeconomics

Which of the following statements is true? A.)A government free of corruption is an example of a bad institution. B.)Human creativity allows for existing products to improve. C.)Wealthy countries tend to have fewer innovative individuals. D.)Wealthy nations tend to have weak institutions.

B.)Human creativity allows for existing products to improve.

The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing research for an economics project, Charlie discovers that more households today, as compared to households 100 years ago, have electricity, air conditioning, and a car. Which of the following explains why modern Americans enjoy a higher standard of living than Americans 100 years ago? A.)Americans have prospered and earned more money due to a complete lack of recessions. B.)Market failures are nonexistent. C.)The invisible hand has guided all nations around the world to this prosperity. D.)There has been economic growth in our society.

D.)There has been economic growth in our society.

Classify each statement based on whether or not it is a primary goal of macroeconomic policy. Not a Primary Macroeconomic Goal

Eliminating political conflict Help set the optimal price for a pound of peaches at the local grocery store Calculate how much urban residents are willing to pay to protect biodiversity

Nunavut Arctic College offers programs in health, education, law, culture, arts, and business. They also offer five categories of apprenticeship programs to prepare interested individuals for jobs in specific trades. Of these apprenticeship programs, one is in the field of carpentry and another is in the field of housing maintenance. There are no trees in Nunavut. Why would Nunavut Arctic College offers apprenticeships in carpentry and house maintenance? b. Participating in an apprenticeship program is a form of

Specialization

Determine if the items represent an example of positive economics or normative economics. As minimum wage increases, the prices of all goods and services also tends to increase. A.)positive economics B.)normative economics

A.)positive economics

Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. How much will Ultravision charge for "Call of Obligation"?

1 Microeconomics

Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. How much will Ultravision pay the developers of the game?

1 Microeconomics

Suppose that the video game company Ultravision releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. Is Ultravision able to sell all of the "Call of Obligation" games it produces or do they need to produce more?

1 Microeconomics

2.) Consider the statement Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics. Increased consumer spending causes the rate of inflation to rise

2 Macroeconomics

2.) Consider the statement Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics. Optimism about future car sales leads General Motors to hire more auto workers

2 Microeconomics

The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing research for an economics project, Charlie discovers that more households today, as compared to households 100 years ago, have electricity, air conditioning, and a car. In which field do researchers focus on investigating the phenomena described? A.)Economics B.)Political Science C.)Sociology D.)Business

A.)Economics

Suppose now that the school wishes to make sure no students with diabetes or asthma go without the drug because they cannot afford it. Because it does not know the budget of each student, the Health Center decides to offer vaccines free to students who can provide a doctor's note stating they have a pre‑existing condition. The school is now seeking a greater degree of A.)fairness. B.)self‑interest. C.)efficiency.

A.)fairness.

The owner of a snow cone trailer realizes that the demand for snow cones is low during the winter, and thus, closes shop until the temperature warms back up near summertime. A.)market efficiency B.)government intervention C.)specialization D.)equilibrium

A.)market efficiency

Determine if the items represent an example of positive economics or normative economics. Social welfare spending in Sweden occupies too large a portion of the national budget. A.)normative economics B.)positive economics

A.)normative economics

Determine if the items represent an example of positive economics or normative economics. The richest 1% of Americans should pay more taxes than the rest of the 99%. A.)normative economics B.)positive economics

A.)normative economics

On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera at one store or a flat screen TV at another store, and buying one means losing out on the ability to purchase the other. A.)opportunity cost B.)marginal decisions C.)resource scarcity

A.)opportunity cost

Determine if the items represent an example of positive economics or normative economics. 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. A.)positive economics B.)normative economics

A.)positive economics

Which of the following economic concepts adequately describe the Canadian province of Nunavut? A.)scarcity B.)trade C.)specialization D.)technology transfer

A.)scarcity B.)trade C.)specialization

1. Economics is defined as: A.)the study of how individuals, businesses, and societies make decisions to maximize their well-being given limited resources. B.)the study of the fundamental nature of problems, such as those connected to reality and existence. C.)the study of human culture and its evolution over time around different regions across the world. D .)study of how individuals and society use unlimited resources to fulfill their needs and wants.

A.)the study of how individuals, businesses, and societies make decisions to maximize their well-being given limited resources.

Suppose the University Health Center receives flu vaccinations at the beginning of each flu season, and that they offer these vaccines for the market price of $20.00 each. Assume that college students have varying budgets. Some have some money to spare, some are on a very tight budget. Keep in mind that some students have pre‑existing conditions, such as asthma and diabetes, that place them at high risk for the flu. Who will receive the vaccines if the University Health Center sells them for the $20.00 market price? A.)the students who most need them B.) the students who will pay $20.00 for them C.)the students who most want them

B.) the students who will pay $20.00 for them

Which scenario would least likely change an individual's behavior? A.)The city of Saskatoon chooses to give its residents a penny for each soda can they recycle in an effort to promote environmental awareness. B.)In an effort to make people eat healthier, the city of Bakersville tells its residents to eat wheat bread instead of white bread. C.)The country of Ravamolk enacts a policy to fine companies 20% of their earnings if the safety standards in their factories do not reach acceptable work conditions. D.)A basketball team manages to sign a trio of famous basketball stars who then clamor for other players to come join their team to win a guaranteed championship.

B.)In an effort to make people eat healthier, the city of Bakersville tells its residents to eat wheat bread instead of white bread.

During the summer, the largest computer game retailer has a massive sale. As prices for computer games fall, consumers purchase more games, ceteris paribus. Why, if at all, is the ceteris paribus condition important in economic analysis? A.)It is not important. B.)It allows the analysis of how a single change affects an economic environment. C.) It allows the analysis of how changes in every economic variable at once affects an economic environment.

B.)It allows the analysis of how a single change affects an economic environment

The local river has so much pollution that three-eyed fish are forming. The government responds by regulating the amount of chemicals that can be dumped into the river. A.)market efficiency B.)government intervention C.)specialization D.)equilibrium

B.)government intervention

Megan has a 1 hr gap in her course load for the fall semester. There are two courses available for her to take at that time: reading piano sheet music and beginning rock climbing. She does not have any experience with piano or rock climbing. In the end, she decides to enroll in the rock climbing course, despite her fear of heights. Identify which activity exhibits a potential trade-off with enrolling in rock climbing. A.)learning rock climbing skills B.)learning to read piano sheet music C.)overcoming her fear of heights D.)none of the above

B.)learning to read piano sheet music

Suppose the University Health Center receives flu vaccinations at the beginning of each flu season, and that they offer these vaccines for the market price of $20.00 each. Assume that college students have varying budgets. Some have some money to spare, some are on a very tight budget. Keep in mind that some students have pre‑existing conditions, such as asthma and diabetes, that place them at high risk for the flu. Suppose the school sells all of its vaccines at the market price of $20.00. What has it managed to maximize? A.)social interest B.)fairness C.)effciency

C.)effciency

At a high-end restaurant, the restaurant owner has one chef at a meat station, one chef at a vegetable station, and one chef, who has an artistic eye, plate the food she is given. The result is increased service speed, and the kitchen is able to serve more customers in an evening. A.)market efficiency B.)government intervention C.)specialization D.)equilibrium

C.)specialization

Economics majors tend to earn more than Education majors. What is a possible reason for the difference? A.) state governments set limits on how much teachers can be paid. B.)very few students seek Bachelor's degrees in Education. C.)teaching positions tend to have more vacation days than positions in Economics. D.)Economics majors always enter higher paying professions.

C.)teaching positions tend to have more vacation days than positions in Economics.

Kanye, Eddie, Jaco, and Danny are trying to form a band. They each have some basic skills on most instruments, so their current plan is for each of them to rotate among vocals, guitar, bass, and drums. After a year of practice and rehearsals the band still sounds awful. Kanye cannot keep a steady beat when on bass or drums, Jaco sounds terrible on everything except the bass, nobody except Eddie can remember all the chords on guitar, and even Danny's own mother thinks his singing sounds like a dying cow. At their current rate, they expect it will be several years before they are good enough to land their first paid performance. None of them have enough money saved up to last that long. They all know you are taking economics and ask your advice. What would you say to them? A.) Abandon the band, as continued practice is doomed to suffer diminishing marginal returns. B.) Continue with the current plan, as economies of scale should eventually kick in. C.) Change the rotation to be random rather than equal to take advantage of heteroskedasticity. D.)Have each member specialize in the role that they are best in to take advantage of benefits from specialization. E.)Invest their remaining savings in new instruments, as they are at a point where the marginal product of capital exceeds the marginal product of labor.

D.)Have each member specialize in the role that they are best in to take advantage of benefits from specialization.

A trade‑off analysis entails: A.)consideration of purely financial values in decision‑making. B.)gaining data on terms of trade for a given transaction. C.)exchanging one good for another at a similar price. D.)assessing the costs and benefits of different alternatives.

D.)assessing the costs and benefits of different alternatives.

During the summer, a bumper crop of oranges in Florida causes a surplus in the supply of oranges nationwide. As a result, prices fall to compensate for the surplus and consumers enjoy the fruits of the farmers' labor. A.)market efficiency B.)government intervention C.)specialization D.)equilibrium

D.)equilibrium

During the summer, the largest computer game retailer has a massive sale. As prices for computer games fall, consumers purchase more games, ceteris paribus. A.)What does the term ceteris paribus mean in this context? B.)allowing all economic variables to change that it is an easy to understand statement and does not require complex analysis C.)that the basic concepts of economics do not apply D.)holding all else equal (unchanged)

D.)holding all else equal (unchanged)

Economic goals such as economic growth, low inflation and low unemployment are: A.)ignored by policy-makers. B.)under the direct control of businesses. C.)unachievable objectives. D.)not always aligned.

D.)not always aligned.

When a customer chooses to accept an item of value from a business because it requires no incremental spending on the part of the customer, the customer is demonstrating the principle that: A.)markets are an efficient way to organize economic activity. B.)specialization produces benefits for society. C.)customers are smarter than businesses. D.)rational people think at the margin.

D.)rational people think at the margin.

People have limited resources. A.)business cycle B.) recession C.)margins D.)scarcity E.)entrepreneurship F.)tradeoffs

D.)scarcity

Human creativity is fostered by a(n) _____ and _____. A.)sizable budget deficit; strong financial institutions. B.)extensive museum network; widely available patrons. C.)government managing the economy; docile citizens. D.)strong educational system; incentives for people to work hard.

D.)strong educational system; incentives for people to work hard.