Differences between macroeconomics and microeconomics correct answers Microeconomics
-deals with the micro unit of economy such as individual consumer, producer or specific industry
Macroeconomics
-deals with the macro picture of the whole economy
The fundamental problem of economics is. ...
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Differences between macroeconomics and microeconomics correct answers Microeconomics
-deals with the micro unit of economy such as individual consumer, producer or specific industry
Macroeconomics
-deals with the macro picture of the whole economy
The fundamental problem of economics is. correct answers Scarcity
-Lack of enough resources to satisfy all desired uses of those resources.
The basic factors of production include. correct answers Land
-all natural resources
Labor
-skills and abilities of all humans at work
Capital
-goods produced for use in further production
Entrepreneurship
-the assembling of resources to produce new or improved products and technology
Adam Smith's Invisible Hand is now called. correct answers Market Mechanism
-The use of market prices and sales to signal desired outputs (or resource allocations)
-determines what gets produced, how and for whom.
The production possibilities curve illustrates which two essential principles? correct answers
Scarce Resources
-limit to the amount of output we can produce
Opportunity Costs:
-Obtain additional quantities of any particular good only by reducing the potential production of
another good
-giving up something to produce something else
Economics correct answers The study of how best to allocate our scarce resources among
competing uses.
Trade Off correct answers A situation that involves losing one quality or aspect of something in
return for gaining another quality or aspect.
When we choose to use resources to produce one thing, we must give up producing something
else with those resources
, State three different ways of making economic choices correct answers The Market Way (market
mechanism)
-Free will will market economy
The Government Way (communist)
-Planned economy
The Mixed Way
-Private and Public and mix to form the Economy
Positive Statement and Normative Statement correct answers Positive Statement
-focuses on "WHAT IS" and is based on facts
Normative Statement
-focuses on "WHAT SHOULD BE" and is based on options or judgements
Production Possibilities Curve (PPC) correct answers Describes the various output combinations
that could be produced in a given time period with available resources and technology
Three core economic questions correct answers WHAT to produce
HOW to produce
FOR WHOM to produce
Approximately how much of the world's output does the United States produce? correct answers
about 23%
Which country is the largest producer of goods and services in the world? correct answers U.S,
More than 80% of U.S. economy is ------------ based economy. correct answers Service
What are the two general styles of production in the economy? correct answers Capital-Intensive
Production
-Production processes that use a high ratio of capital to labor inputs
Labor-Intensive Production
-needing a large workforce or a large amount of work in relation to output.
Human Capital correct answers The knowledge and skills possessed by the workforce
What are the two major benefits of outsourcing and trade? correct answers -Taking advantage of
low opportunity cost around the world.
-Exploiting technological advancements to use resources from around the world.
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