MacroEco

many times in the past several​ decades, firms may have chosen between a production method in the United States that uses fewer workers and more machines and a production method in China that uses more workers and fewer machines.

Firms choose how to produce the goods and services they sell. In many​ cases, firms face a​ trade-off between using more workers or using more machines. For​ example,

productive efficiency and allocative efficiency but not necessarily equity

Japan has a market economy. as such, Japan's economy (relative to centrally planned economies) tends to result in _____.

positive analysis; normative analysis positive analysis

_____ is concerned with "what is", and _____ is concerned with "what ought to be". economics is about _____, which measures the costs and benefits of different courses of action.

productive efficiency; allocative efficiency

_____ occurs when a good or service is produced at the lowest possible cost. _____occurs when production is in accordance with consumer preferences.

consumers, firms, and government

_____decide(s) what goods and services will be produced.

mixed

a _____ economy is an economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources.

tested before it can be accepted or rejected a statment that may be either correct or incorrect usually about a casual relationship

a hypothesis in an economic model is _____.

buyers and sellers

a market is a group of _____ of a good or service and the institution or arrangement by which they come together and trade

we cannot analyze an economic issue unless we reduce its complexity models have to be simplified to be useful

any model is based on making assumptions because _____.

all of the above

economics is a social science because _____.

marginal benefit equals marginal cost

economists use the word marginal to mean an extra or additional benefit or cost of a decision. an optimal decision occurs when

the fair distribution of economic benefits

equity is

microeconomics

examining the costs and benefits of approving the sale of a new prescription drug is most likely to cause an issue

should not

given the changes in Medicare, if the marginal benefit of offering an additional bed is $4,000 and the marginal cost is $6,000 per bed, then the cooperation _____ offer additional beds

how income is distributed

in the United​ States, who receives the goods and services produced depends largely on_____.

economics

is the study of the choices people make to attain their goals, given their scarce resources

even brand loyal customers can be convinced to change their preferences

jonathan baker is a market analyst. he works at a firm that is one of the few producers of good X. jonathan formulates a hypothesis that an increase in advertising will increase the demand for this firm's product by attracting new customers. which of the following, if true, would suggest that jonathan's hypothesis will hold?

the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth

macroeconomics is _____.

economic growth

macroeconomics is most likely to include the study of _____.

how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices

microeconomics is the study of

scarcity

one of the basic facts of life is that people must make choices as they try to attain their goals. this unavoidable fact comes from a reality an economist calls _____.

the highest valued alternative that must be given up to engage in an activity

opportunity cost is _____.

centrally planned; market

societies organize their economies in two main ways to answer the three questions of​ what, how, and who. a society can have a _____ economy in which the government decides how economic resources will be allocated. or a society can have a _____ economy in which the decisions of households and firms interacting in markets allocate economic resources.

positive analysis

suppose an analyst estimates how many jobs have been losy from family leave laws. this is an example of _____.

economic incentives

suppose, in an effort to prevent the population from declining, Italy begins offering new mothers extended periods o paid family leave from work and, consequently, the birthrate per woman increases. If so, then this could best be characterized as an example of people responding to ?

North Korea

trade-offs force society to answer questions such as what goods and services will be produced, how will the goods and services be produced, and who will receive the goods and services produced. which of the following countries has an economy where the government makes these decisions?

what goods and services will be produced? how will the goods and services be produced? who will receive the goods and services produced?

trade-offs force society to make choices, particularly when answering th following three fundamental questions:

people are rational

when economists develop models designed to explain the choices people​ make, they generally assume that

macroeconomics

which of the following covers the study of topics such as inflation or unemployment?

make value judgments to be proven or disproven

which of the following is not a step economists follow when developing an economic model?