macrocosmic unit 1 chapter 1 quiz
If a window gets broken and somebody says, 'do not fret, this creates wealth because it creates a job for the glass maker'. What is that an example of:
A. Broken Window Fallacy B. Scarcity C. Choices D. Production Possibilities Frontier "A"
Which one looks at the big picture
A. Macroeconomics B. Microeconomics "A"
In the circular flow model looking at just firms and households. Do physical goods and money flow in the same direction?
A. True B. False "B"
Is the product market(goods market) and the factor market(AKA resource market) the same thing?
A. True B. False "B"
When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being:
A. balanced budget B.prudent monetary policy C.low inflation D. assuring competition between firms "C"
In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
A. division of labor B. interconnected economy C. task economy D. modern economy "A"
Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.
A. financial capital market B. circular flow diagram C. financial investment market D. specialization model "B"
The circular flow diagram of economic activity is a model of the:
A. flow of goods, services, and payments between households and firms. B. influence of government on business behaviour. C. role of unions and government in the economy. D. interaction among taxes, prices, and profits. "A'
Which of the following best describes a fiscal policy tool?
A. government spending B. bank lending C. financial capital markets D. household spending "A"
Today the Broken Window Fallacy can similarly be applied to the fear of jobs being lost due to a rise in
A. scarcity B. wages C. robotics D. opportunity cost 'C'