Macroeconomics Quiz 1

A student attends college. if the student were not in college, she would be working at a business nearby. in both cases, she would be living with her parents and eating the same food. Which of the following represents the opportunity cost if going to college?

the income she would have earned while working

It is likely that LeBron James( a famous NBA Player) does not mow his own lawn. How could an economist explain this most plausibly

LeBron James has a high opportunity cost of mowing his own lawn

In economics, choices are necessary because of the presence of what?

Scarcity

in economics, "marginal" means which of the following?

additional/extra

the point on the PPF that represents the best combination of goods Given The Country's Preferences is called what?

allocatively efficient

Which if the following could shift a country's PPF out?

better technology

When a buyer and seller engage in a voluntary transaction, but this transaction harms or helps another person (besides the buyer or seller) , 3e call this what?

externality

when making a decision, you should do something if if the marginal benefit of that something is what?

higher than the marginal cost

Economics is the study of what?

how to allocate scarce resources

The PPF is generally bowed out-- not a single straight line-- because of which of the following?

increasing opportunity cost

Suppose a country has a Production Possibilities Frontier(PPF) for guns and butter. A point (a gun/butter combination) that us on the frontier is called what?

technically efficient

Economics is concerned with the trade-offs that emerge because of scarcity. The term "trade-offs" refers to

the alternatives given up when making choices

Which if the following could NOT be the opportunity cost of going to a Grizzlies game?

the price if the Grizzlies ticket

the need to study economics would cease if...

there were enough resources to produce all the goods and services people would like to obtain.

Which of the following is a macroeconomic question?

what is the U.S. unemployment rate?