Posted by Heidi on .
1. Microeconomics deals with: (Points: 3)
the working of the entire economy or large sectors of it.
individual units in the economy. THIS ONE I PICKED
all of the above.
2. The basic concern of economics is: (Points: 3)
to keep business firms from losing money.
to prove that capitalism is better than socialism.
to study the choices people make.
to use unlimited resources to produce goods and services to satisfy limited wants. I PICKED THIS ONE
3. When we are forced to make choices we are facing the concept of: (Points: 3)
the margin. I PICKED THIS ONE
4. If the state government allocates additional spending on education, the opportunity cost is: (Points: 3)
zero. I PICKED THIS ONE
The dollar amount of the additional spending.
only considered if additional taxes need to be raised to fund the spending.
measured in terms of the alternative uses for that money.
5. Which of the following principles underlie the economics of individual choices? (Points: 3)
There are gains from trade.
Markets move toward equilibrium.
People usually exploit opportunities to make themselves better off. I PICKED THIS ONE
Resources should be used as efficiently as possible to achieve society's goals.
6. Increases in total output realized when individuals specialize in particular tasks and trade are known as: (Points: 3)
the gains from trade. I PICKED THIS ONE
the profits obtained from sales of a good or service.
7. Economists believe that resources should be used as efficiently as possible to: (Points: 3)
achieve society's goals.
do all of the above. I PICKED THIS ONE
8. Resources are being used efficiently when: (Points: 3)
scarcity is not longer an issue.
they are also used equitably.
every opportunity to make people better off has been utilized.I USED THIS ONE
there are still gains from trade available.
9. The production possibilities curve illustrates that: (Points: 3)
the economy will automatically end up at full employment.
an economy's productive capacity increases proportionally with its population.
if all resources of an economy are being used, more of one good can be produced only if less of another good is produced. I PICKED THIS ONE
economic production possibilities have no limit.
10. When moving along a production possibilities curve, the opportunity cost to society of getting more of one good: (Points: 3)
is measured in dollar terms.
is measured by the amount of the other good that must be given up. I PICKED THIS ONE
Microecomonics (need to see if i got these right -
1) I agree
2) Economics studies how LIMITED resources are used to satisfy UNLIMITED wants. Given that this isnt one of your choices, I would go with c) to study the choices people make.
3) I would go with c) we make choices because of scarcity; we cant have everything we want, so we have to make choices
4) no no no, opportunity cost of government spending is measured in terms of the NEXT BEST alternative uses for that money.
5) I agree
6) I agree
7) Hummm. Initially, I agreed. However, efficiency reduces scarcity but doesnt eliminate it. Second, equity (or inequity) is a normative concept; being efficient doesnt really address or relate to equity. Finally, societies goals is also an normative concept. Being efficient may improve the success rate on achieving societies goals, but societies goals is not the reason for being efficient. I wish none-of-the above was a possible answer.
8) I agree
9) I agree.
10) I agree
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