Unit One Econ
a satellite communication system
An example of a capital good is _____.
shopping mall
An example of a capital good is a
a chocolate chip cookie
An example of a consumption good and service is
is; he considers the benefit and cost of donating one additional dollar
Bill Gates' decision about his donations _____ made on the margin because ______.
more; more
Compared to the developing economies, the advanced economies have _____ human capital and _____ physical capital.
income inequality across the entire world has decreased during the past 20 years, and extreme poverty has declined.
Consider how incomes are distributed within economies and across the world. Which of the following statements about aspects of global income is correct?
labor
Consider the functional distribution of income. Which factor of production receives the largest percentage of income? The largest percentage of income paid to the factors of production is paid to
are items that individuals and governments buy and use up in the current period
Consumption goods and services
we can't afford to do all the things we'd like to do
Every day, we make many choices. Why is making choices unavoidable?
the knowledge and skill that people obtain from education, on-the-job training, and work experience
Human capital is
what you must give up to get something; what you are willing to give up to get it
In economics, cost is measured as _____, and benefit is measured as ______.
increased the marginal cost
Mothers Against Drunk Driving (MADD) campaigned to increase the legal penalties of drunk driving. This successful campaign ______ against drunk driving.
We should save more
One of the following statements is an example of a normative statement. Which one is it?
The price of oil is rising
One of the following statements is an example of a positive statement. Which one is it?
measure what you are willing to give up to take the trip
Suppose you take a trip during Spring Break. To determine the benefit of taking the trip, you
what you are willing to give up to obtain the good or service
The benefit from a good or service that you purchase is measured by
human capital and physical capital
The global distribution of income is unequal because there is an unequal distribution of ____.
money flows from firms through factor market to households
The incomes earned by the factors of production are
i, ii, and iii
Which of the following is a microeconomic topic? i. K-Mart's decision to close stores that are not making a profit. ii. Home Depot's choice to hire more full-time employees because its sales increased. iii. Delta Airlines changes its fares.
The effect on economic growth if the government raises taxes
Which of the following is a topic studied in macroeconomics?
the light provided by the sun
Which of the following is not an example of scarcity?
the net benefit of spending the evening studying is greater than the net benefit of going to see a movie
You can spend the evening studying or you can go to see a movie. When is the decision to spend the evening studying a rational choice? Your rational choice will be to spend the evening studying if
making a choice at the margin
You want to walk your dog and also tidy your bedroom. You think hard about how to allocate the next hour between walking the dog and doing housework. You decide to spend the first 10 minutes walking the dog and the remaining 50 minutes tidying your bedroom. Your decision is an example of
real flows from households through the factor markets to firms
In the circular flow model, the flows of the services of the factor of production are
labor services; the use of capital
Wages are paid for _____ and interest is paid for _____.
compares his marginal benefit of making a donation and the marginal cost
When making these donations, Bill Gates
land, labor, capital, and entrepreneurship
Which of the following are the categories of factors of production?
Statement A deals with how, B deals with what, and C deals with for whom.
Which of the following headlines deals with what, how, and for whom questions? A. Supermarkets switch to self-checkout B. Spas and gyms are booming C. Coach earns more than Prof!
i and ii
Which of the following is a macroeconomic topic? i. China increases interest rates to try and lower the unemployment rate. ii. Congress lowers tax rates to try and lower the unemployment rate. iii. Nissan decides to produce more electric Leaf models and fewer Altima sedans.
The price of gasoline increases in the United States this year.
Which of the following is a microeconomic issue?
are goods that businesses and governments buy to increase productive resources to use during future periods to produce other goods and services
Capital goods
If Bill Gates' marginal benefit of a donation exceed its marginal cost, his decision to make the donation is rational.
Is Bill Gates decision to make a donation a rational decision?
national of global economies.
Macroeconomics is the study of
choices made by individuals and businesses.
Microeconomics includes the study of the
