Micro Final Exam Review

one of the basic facts of life is that people must make choices as they try to attain their goals. This is unavoidable fact comes from a reality an economist calls a. scarcity b. economics c. rationality d. the market

A

suppose, in an effort to prevent the population from declining, Italy beings offering new mothers extended periods of paid family leave from work and consequently the birthrate per woman increases. if so, then this could best be characterized as an example of people responding to a. economic incentives b. religious beliefs c. envy d. compassion e. accounting principles

A

when economists develop models designed to explain the choices people make, they generally assume that a. people are rational b. consumers do not use all available info c. consumers do not act to achieve their goals d. everyone knows everything e. people make the best decisions

A

Why might studying economics be particularly good preparation for being the top manager of a corporation or a leader in​ government? a. management and politics have more to do with public relation than economics b. economics teaches us how to look at the trade offs involved in every situation c. economics is just as valuable to a cashier as it is to a ceo d. economics is less of an issue as you climb the corporate ladder bc you usually hire accountants to handle your money

B

According to economists, an efficient tax is one that a. maximizes tax revenue for government b. is relatively easy to collect relative to the revenue it generates c. imposes a small excess burden relative to the tax revenue it raises d. splits the tax burden equally between consumers and producers

C

Do the people who are legally required to pay a tax always bear the burden of tax? a. no. producers always bear the burden of the tax b. yes. those who are legally required to send a tax payment to the gov bear the burden of the tax c. no. whoever bears the burden of the tax is not affected by who legally is required to pay the tax to the government d. no. consumers always bear tax burden e. no. those who are legally required to send a tax payment to the government never bear tax burden

C

Economists believe that an activity should be continued up until the point where a. marginal benefit from activity is greater than marginal cost b. marginal benefit from activity is less than marginal cost c. the marginal benefit from activity is equal to marginal cost d. the marginal benefit from activity + marginal cost = 0

C

What do economists mean by the word​ "marginal"? a. first b. unimportant c. extra or additional d. small

C

Which of the following statements about micro and macro is correct: a. all economic situations can be categorized as being micro or macro b. micro does not involve the analysis of economic policy c. micro involves the study of how households and firms make choices d. macro does not involve the analysis of economic policy

C

Societies organize their economies in two main ways to answer the three questions of​ what, how, and who. A society can have a _________ economy in which the government decides how economic resources will be allocated. Or a society can have a _______ economy in which the decisions of households and firms interacting in markets allocate economic resources.

Centrally planned; Market

tax burden indicates: a. the burden of a tax on consumers b. the burden of tax on producers c. who is not legally required to send a tax payment to the government d. the actual division of the burden of tax e. who is legally required to send a tax payment to the government

D

tax incidence indicates a. the burden of tax on consumers b. the burden of tax on producers c. who is not legally required to send a tax payment to the government d. the actual division of the burden of tax e. who is legally required to send a tax payment to the government

D

which of the following statements about micro and macro is correct a. micro does not involve the analysis of economic policy b. all economic situations can be categorized as being micro or macro c. macro does not involve the analysis of economic policy d. macro is the study of economy as a whole

D

Is this a micro or macro issue: the effect of higher income taxes on the Total amount of consumer spending

Macro

is this a micro or macro issue: the effect of higher cigarette taxes on the quantity of cigarettes sold

Micro

is this a micro or macro issue: the reasons for low rates of profit in the airline industry

Micro

A large corporation that runs nursing homes estimates that changes to Medicare will result in lower payments by Medicare to nursing homes for​ short-term stays by patients that require therapy or care upon leaving hospitals. Assume the corporation is considering expanding the number of​ "beds" it offers at its nursing homes. Part 2 Given the changes to​ Medicare, if the marginal benefit of offering an additional bed is ​$8,000 and the marginal cost is ​$4,000 per​ bed, then the corporation ______ offer additional beds.

Should

Is this a micro or macro issue: the reasons for the economies of East Asian countries growing faster Thant the economies of sub saharan African countries

macro