SCC ECON mid term 1

If microeconomics looks at the individual sector in an economy, it would focus on which of true following? A. GDP B. Business firm C. Unemployed people D. Inflation rate

B. Business firm

The two main tools of macroeconomics policy include monetary policy, and fiscal policy, which involves __________ spending. A. Business B. Government C. Household D. Capital market

B. Government

______________-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. A. Skill B. Specialization C. Economics scale D. Division of labor

C. Economics scale

In the _________ , household receive goods and service and pay firms for them. A. Labor market B. Financial capital market C. Goods and services market D. Savings market

C. Goods and service market

spcialization

Can lead to an increase in overall production

Macroeconomics topics do not usually include A. National Income B. Interest rate C. Unemployment rate D. Firm's production rate

D. Firm's production rate

In the___________, household pay and receive goods from firms. A. Financial investment market B. Financial capital market C. Labor market D. Goods Market

D. Goods market

The circular flow diagram of Economic activity is a model of the

Flow of goods, services, and payments between household s and firms.

If demand for good X increased while supply for it stay constant then

Price equilibrium for good X will increase.

If supply increases and demand decrease, then the equilibrium

Price will decrease and quantity could increase, decrease, or remain the same

if market supply increases while demand increase, then equilibrium

Price will increase and quantity could increase, decrease, or remain the same