Chapter 1

Additional gain from on more unit of an activity

the marginal benefit is the

about what ought to be

A normative statement is

Could either be a reward or a penalty

An incentive

an incentive

An inducement to take a particular action is called

"how"

As art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ______ part of one of the two big economic questions

an hour of sleep given up

Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is

own all the other resources used in the production process

Entrepreneurs do all of the following except

entrepreneurship

Human resources that perform the functions of organizing, managing, and assembling the other resources are called

microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy

In broad terms the difference between microeconomics and macroeconomics is that

Macroeconomics focuses on the national economy and the global economy

Macroeconomics differs from microeconomics in that

Total, Nationwide employment

Macroeconomics topics include

deciding to do a little bit more or a little bit less of an activity

Making a choice at the margin means

Brand B or Brand C, depending on which is considered the highest- value alternative forgone

Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each cost ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

Arises from the fact that our wants exceed available resources

The Study of economics

macroeconomics

The branch of economics that deals with the analysis of the whole economy is called

entrepreneurship

The economic resource that organizes the use of other economic resources is called

"for whom"

The fact that people with higher incomes get to consume more goods and services addresses the ________ part of one of the two big economic questions

Scarcity

The fact that wants cannot be fully satisfied with available resources reflects the definition of

Capital; interest

The income earned by the people who sell the services of the factor of production _____ is called ______

More students should study economics

The statement that ______ is a positive statement

microeconomics

The study of the decisions of individual units in the economy is known as

"What"

When a country decides to produce fewer bombers and more public housing projects, it is answering the ____ part of one of the two big economic questions

"What"

When a farmer decides to raise hogs instead of cattle, the farmer is answering the ______ part of one of the two big economic questions

Opportunity cost

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

Instruments, machines, and buildings used in production

Which of the following best defines capital as a factor of production

100 shares of Microsoft stock

Which of the following is NOT a factor of production?

How federal government budget deficits affect interest rates

Which of the following is a macroeconomic issue?

an alternative action will be selected

if the marginal cost of an activity exceeds the marginal benefit, then

cost of an increase in an activity

marginal cost is the