M1A4 Module 1 Quiz ECON

In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

Cuba

Which of the following lies primarily within the realm of macroeconomics?

a study of how tax cuts stimulate aggregate production

which of the following best describes a monetary policy tool?

interest rates

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.

market-oriented economy

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:

$44

Which of the following is most likely a topic of discussion in macroeconomics?

A decrease in unemployment rate

Why is there scarcity?

Because our unlimited wants exceed our limited resources

Refer to Figure 2-1. An economy is operating at full employment, and then workers in the bread industry are laid off. This change is portrayed in the movement from:

C to F

_____________ - 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.

Economies of scale

Refer to Figure 2-1. The most inefficient point depicted is:

Point G

Refer to Figure 2-2. At Point A in the production possibilities graph shown above, the economy:

Refer to Figure 2-2. At Point A in the production possibilities graph shown above, the economy:

Which of the following would most likely shift the production possibilities curve inward?

a decrease in the average number of hours worked per week as the labor force chooses to enjoy more leisure time

Macroeconomics primarily examines:

broad issues such as national output, employment and inflation.

The model that economists use for illustrating the process of individual choice in a situation of scarcity is the _________________, sometimes also called the opportunity set, a diagram which shows what choices are possible.

budget constraint

The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good.

budget constraint

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

buyers and sellers

Marginal thinking is best demonstrated by:

choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time.

Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.

circular flow diagram

The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.

diminishing marginal utility

Which of the following is generally accepted as a valid criticism of the production of useful goods and services?

environmental pollution

In the ______________, households receive goods and services and pay firms for them.

goods and services market

Attending college is a case where the ________________ exceeds the monetary cost.

opportunity cost

In many cases, it is reasonable to refer to the ________________ as the price.

opportunity cost

If macroeconomics looks at the economy as a whole, it focuses on which of the following?

unemployed people

In deciding how many hours to work, Beulah will make a choice that maximizes her _______; that is, she will choose according to her preferences for leisure time and income.

utility