Macroeconomics

What might cause a demand function to shift to the right?

An increase in the price of a substitute.

The scarcity principle applies to:

all decisions

When the price of an item increases, buyers tend to purchase less of that item:

because of both the substitution and the income effects

Microeconomics is distinguished from macroeconomics in that microeconomics focuses on:

choices made by individuals or groups in the context of individual markets.

If the price of computers increases and the demand for monitors decreases as a result, then:

computers and monitors are complements.

Economics is best defined as the study of:

how people make choices under the conditions of scarcity and the results of those choices

The cost-benefit principle indicates that an action should be taken:

if the extra benefit is greater than or equal to the extra costs

The supply curve illustrates that firms:

increase the quantity supplied of a good when its price rises.

Which branch of economics is most likely to study differences in countries' growth rates?

macroeconomics

True or false? Supply curve is generally upward rising because as supply rises price rises.

nah!

If the demand for steak increases as income increases, this means that steak is a(n):

normal good.

Suppose one observes that when the price of peanut butter increases, the demand for jelly increases. One must conclude that:

peanut butter and jelly are substitutes.

A shortage occurs when:

quantity demanded exceeds quantity supplied.

The central concern of economics is:

scarcity

Economic surplus is:

the difference between the benefit gained and the cost incurred of taking an action.

The opportunity cost of an activity is the value of:

the next-best alternative forgone.

Macroeconomics is distinguished from microeconomics by its concentration on:

the performance of national economies and ways to improve upon their performance.

True or false? An action is taken when the associated marginal cost equals the marginal benefit

tru!

True or false? Demand curve is generally downward sloping because as price rises demand falls.

tru!