Macro test 1

Refer to the graphs. Assume that pizza is measured in slices and beer in pints. In which of the graphs is the opportunity cost of a pint of beer equal to one slice of pizza

graph D (10 pizza 10 beer)

Refer to the figure above. Using the graph above and beginning on D1, a shift to D2 would indicate a(n):

increase in demand

Macroeconomics:

is concerned with the expansion and contraction of the overall economy

Most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.

marginal analysis

In which of the following countries will the national government have the greatest influence with respect to the nation's economy China Cuba Canada Chile

Cuba

In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made

Government

If products A and B are complements and the price of B decreases, the

demand for A will increase and the quantity of B demanded will increase

The law of ____________________________ explains why production possibilities curve has a concave shape

diminishing returns

The circular flow diagram of economic activity is a model of the:

flow of goods, services, and payments between households and firm

The downward slope of the demand curve again illustrates the pattern that as _____________ rises,_________________ decreases

price, quantity demanded

A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the _________________

supply curve to the right

Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:

the benefit to his grades from studying for an hour

As depicted in _________________________________, it is necessary to give up some of one good to gain more of the other good

the production possibilities frontier

Macroeconomic topics do not usually include:

the profit maximizing decisions of an individual manufacturer

A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:

the supply curve

When quantity demanded decreases in response to a change in price:

there is a movement up along the demand curve

Camille is at the candy store with Grandma Mary, who offers to buy her $6 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's Grandma Mary buy her?

two lollipops and two candy bar

Scarcity exists because of:

unlimited wants and limited resources

But nearly all supply curves share a basic similarity: they slope _______________

up from left to right

In economics, the demand for a good refers to the amount of the good that people:

will and be able to buy at various price