Macroeconomics Chapters 1&2
One variable graphs.
Refer to images A,B, &C. These represent what type of graphs?
A positive relationship.
Refer to the previous graph. What is the best descriptor of the relationship between disposable income and consumption spending? **
Moving from point B to point C.
Refer to the previous graph. Which of the following best represents the situation in which BMW must face a trade-off between the producing SUV's and producing hybrids?
Natural resources
The resources provided by nature and used to produce goods and services are also known as?
Ceteris paribus
Economic models often simplify the real world by holding all things equal and changing one variable to determine the impact of change. The "All things equal" assumptions is also known as?
Point C
According to the graph, which point represents an efficient use of resources? ***
When the third worker is hired.
According to the table of data, when do diminishing returns in the production of pizzas begin? ***
How do we use products?
Economic decisions are made at every level in society. When we ry to decide which production method to use among several alternatives, which of the following key economic questions are we trying to answer?
Marginal Analysis
Decision analysis that involves comparing marginal costs and marginal benefits tp determine the best course of action is known as?
Nominal, real
Economic variables that calculated in current year prices are referred to as ______ variables, while variables that have been corrected to account for the effects of inflation are _____ variables.
Scarcity
Economics is the study of choice under conditions of?
Is concerned with how people respond to incentives.
Economics?
Can simply complex topics.
Graphs are often used in economics because they?
Combination G
In the above graph, which of the following combinations is unattainable with the current resources available in this country? **
Greater between points g and h than between points i and j.
In the previous paragraph, the value of the slope is?****
Graph C.
In the previous series of graphs, which graph shows a negative and increasing relationship between x and y? **
The opportunity cost of lost wages from keeping her store open.
Marlene decided to close down her retail clothing store and go back to work for a large corporation, even though she was making an accounting profit. Her decision was based on the fact that she would make more money in her old job than she was making in the retail clothing store. Marlene's decision factored in?
Minimum wage
The lowest amount a firm in legally allowed to pay an employee is known as the?
A technological advance that affects both the production of automobiles and aircraft carriers.
The outward shift of the production possibilities frontier from point A to point B in the above graph would most likely be caused by?
22 hours
The previous table shows the marginal benefit that Ted earns from keeping his store open one more hour. Ted has a marginal cost of $90 per hour. How many hours should Ted stay open?
Scarcity
The principle of opportunity cost evolves from the concept of?
When at least one input is fixed.
The principle pf diminishing returns applies?
Vertical, divided
The slope of a straight line equals the change in the value on the ______ axis ______ by the change in the value of the other axis measured between any two points on the line.
Physical capital
The stock of computers, factory buildings and machine tools used to produce goods is known as?
Y-axis.
The vertical axis on a graph is also known as the?
Eliminate climate change
Understanding economics can help policymakers devise strategies to do all of the following EXCEPT?
The graph on the left.
Which graph represents a relationship between two variables? ***
Normative statements.
Which of the following are NOT essential components of an economic model?
If minimum wage rates rise, then unemployment will rise.
Which of the following is a positive economic statement?
Opportunity cost
Which of the following is known as the highest-valued alternative that must be given up in order to engage is an activity?
The cost of housing.
Which of the following is not a possible opportunity cost of attending college?
Simplifications of reality that focus only on key relationships and ignore less relevant details.
Economic models are?
A normative statement.
If the president of Columbia commented that "we should do something to reduce inflation in Columbia", this would be an example of?
Decreased
If your nominal wages increased by 10% and inflation was 15% your real wage?
Political party affiliation
Macroeconomics is concerned with all of the following EXCEPT?
Evaluate the marginal cost and marginal benefit of that decision.
One of the first steps in deciding whether to complete your education is to?
Maintain their purchasing power.
Social security payments are indexed to inflation so that recipients can?
Marginal Benefit
The additional benefit resulting from a small increase in some activity is called the?
-30%
What is the percentage change in price for a shirt that was marked down from$40 to $28?
-1/5
What is the value of the slope of this line? ****
When marginal benefit is less than marginal cost.
When is output higher than the efficient level?
Evaluate the marginal cost and marginal benefit of that decision.
When is output lower than the efficient level?
When marginal benefit is greater than marginal cost.
When is output lower than the efficient level?
The value of the stope is the same between points a and b and points c and d.
Which of the following statements is true about the value of the slope of this line?***