Econ 203
13 ) The analysis of the behavior of individual decision - making units is the definition of A ) microeconomics . B ) macroeconomics . C ) positive economics . D ) normative economics .
A
15 ) Which of the following is a macroeconomic issue ? A ) how federal government budget deficits affect interest rates B ) the cause of a decline in the price of peanut butter C ) what determines the amount a firm will produce D ) how a rise in the price of sugar affects the market for sodas
A
3 ) Economics is best defined as the study of how people , businesses , governments , and societies A ) make choices to cope with scarcity . B ) attain wealth . C ) choose abundance over scarcity . D ) use their infinite resources .
A
12 ) Studying the determination of prices in individual markets is primarily a concern A ) negative economics . B ) microeconomics . C ) positive economics . D ) macroeconomics .
B
8 ) Which of the following is a macroeconomic topic ? A ) why plumbers earn more than janitors B ) the reasons for the rise in average prices C ) whether the army should buy more tanks or more rockets . D ) the reasons for a rise in the price of orange juice
B
D 17 ) Macroeconomic topics include A ) the impact of government regulation of markets . B ) total , nationwide employment . C ) studying what factors influence the price and quantity of automobiles . D ) studying the determination of wages and production costs in the software industry .
B
1 ) An incentive A ) is the opposite of a tradeoff B ) could be a reward but could not be a penalty . C ) could be either a reward or a penalty . D ) could be a penalty but could not be a reward .
C
20 ) When firms in an economy start producing more computers and fewer televisions , they are answering the _____ question . A ) " where " B ) " when " C ) " what " D ) " for whom " producers
C
4 ) Economists point out that scarcity confronts A ) the rich but not the poor . B ) the poor but not the rich . C ) both the poor and the rich . D ) neither the poor nor the rich . that people compete . C ) cooperate
C
18 ) Macroeconomics is the branch of economics that studies A ) prices of individual goods . B ) important , as opposed to trivial , issues . C ) the way individual markets work . D ) the economy as a whole .
D
19 ) When an economy produces more houses and fewer typewriters , it is answering the question . A ) where " B ) " for whom " C ) " how " D ) " what "
D
2 ) The most fundamental economic problem is A ) security . B ) the fact the United States buys more goods from foreigners than we sell to foreigners . C ) health . D ) scarcity
D
5 ) Scarcity requires that people must A ) trade . B ) compete . C ) cooperate . D ) make choices . scarcity applies to
D
10 ) Microeconomics focuses on all of the following EXCEPT A ) the effect of increasing the money supply on inflation . B ) the purchasing decisions that an individual consumer makes . C ) the effect of an increase in the tax on cigarettes on cigarette sales . D ) the hiring decisions that a business makes .
A
orange juice 9 ) Which of the following is a microeconomic topic ? A ) the reasons for a decline in average prices . B ) the reasons why Kathy buys less orange juice C ) the cause of why total employment may decrease D ) the effect of the government budget deficit on inflation
B
trade . 6 ) As an economic concept , scarcity applies to A ) neither time nor money . B ) both money and time . C ) time but not money . D ) money but not time .
B
11 ) In broad terms the difference between microeconomics and macroeconomics is that A ) microeconomics studies the effects of government taxes on the national unemployment rate . B ) macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not . C ) they use different sets of tools and ideas . D ) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy .
D
16 ) Which of the following is an issue in macroeconomics ? A ) the purchasing decisions that an individual consumer makes B ) the effect of an increase in the tax on cigarettes on cigarette sales C ) the hiring decisions that a business makes D ) the effect of increasing the money supply on inflation
D
economics . 14 ) Which of the following topics would be studied in a microeconomics course ? A ) how a tax rate increase will impact total production B ) comparing inflation rates across countries C ) how a trade agreement between the United States and Mexico affects both nations unemployment rates D ) how rent ceilings impact the supply of apartments
D
money . 7 ) Which is the most accurate definition of the study of economics ? Economics is the study of A ) the distribution of surplus goods to those in need . B ) affluence in a morally bankrupt world . C ) ways to reduce wants to eliminate the problem of scarcity . D ) the choices we make because of scarcity .
D