Macro Economics: Chapters 1
Which of the following is a labor resource? A) A computer programmer. B) A computer. C) Silicon (sand) used to make computer chips. D) A piece of software used by a firm.
A computer programmer.
Which of the following is a capital resource? A) A computer programmer. B) A corporate bond issued by a computer manufacturer. C) Silicon (sand) used to make computer chips. D) A piece of software used by a firm.
A piece of software used by a firm.
Which of the following is a land resource? A) A farmer. B) An oil drilling rig. C) A machine for detecting earthquakes. D) Natural gas.
Natural gas.
Microeconomics is concerned with:
a detailed examination of specific economic units that make up the economic system.
The term "other things equal" means that:
a number of relevant variables are assumed to be constant.
The law of increasing opportunity costs is reflected in a production possibilities curve that is:
bowed out from the origin.
The study of economics is primarily concerned with:
choices that are made in seeking the best use of resources.
The point on the production possibilities curve that is most desirable can be found by:
comparing marginal benefits and marginal costs.
Economic resources are also called:
factors of production.
A normative statement is one that:
is based on value judgments.
The four factors of production are:
land, labor, capital, and entrepreneurial ability.
Economics involves marginal analysis because:
most decisions involve changes from the present situation.
A positive statement is one that is:
objective and is based on facts.
The Latin term "ceteris paribus" means:
other things equal.
A production possibilities curve illustrates:
scarcity.
Macroeconomics can best be described as the:
study of the large aggregates of the economy or the economy as a whole.
Any point inside the production possibilities curve indicates:
that more output could be produced with the available resources.
Opportunity costs exist because:
the decision to engage in one activity means forgoing some other activity.
The economizing problem is:
the need to make choices because economic wants exceed economic means.
The scientific method is:
used by economists and other social scientists, as well as by physical scientists and life scientists, to formulate and test hypotheses.
