Exam (elaborations)
Macroeconomics: (HW-CH 1-4) and (Quizzes 1&2&3) questions and answers graded A+ 2024/2025
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Macroeconomics: (HW-CH 1-4) and (Quizzes 1&2&3) questions and answers graded A+ 2024/2025
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Macroeconomics:(HW -CH
1-4)
and
(Quizzes
1&2&3)
HW-CH1
The
definition
of
economics
states
that
it
is
the
study
of
how _________.
-
ANSagents
choose
to
allocate
scarce
resources
and
the
impact
of
those
choices
on
society.
HW-CH1
The
statement
that
the
United
States
has
a
budget
deficit
that
is
in
excess
of
$
15
trillion
is
a
__________
statement
since
it
describes
what
people
actually
do.
The
statement
that
the
United
States
should
legalize
same-sex
marriage
is
a
___________
statement
since
it
describes
what
people
ought
to
do.
The
ethical
implications
of
a
hotly
debated
government
policy
would
best
be
considered
a _________.
-
ANSpositive
normative
normative question,
since
it
deals
with
a
subjective
issue
based
on
personal
preferences.
HW-CH1
Economics
is
divided
into
two
broad
fields
of study:
microeconomics
and
macroeconomics.
Microeconomics
studies _________,
while
macroeconomics
studies _________.
Policy
decisions
made
by
the
government
are
analyzed
by _________.
A
policy
such
as
those
limiting
a
firm's
monopoly
powers
would
be
studied
under
_________,
since
it
deals
with
___________.
-
ANSa
small
piece
of
the
overall economy;
the
economy
as
a
whole.
both
microeconomics
and
macroeconomics.
microeconomics
;
a
small
part
of
the
overall
economy
HW-CH1
The
three
principles
of
economics
include
optimization,
equilibrium,
and
empiricism. Equilibrium
describes
a
situation
where
_________________.
Empiricism
describes
a
situation
where
__________________.
Optimization
describes
a
situation
where
_____________.
-
ANSno
one
would
benefit
from
changing
his
or
her
behavior.
economists
use
data
to
analyze
what
is
happening
in
the
world.
people
weigh
costs
and
benefits
when
making
a
decision.
HW-CH1
Economics,
anthropology, psychology,
sociology,
and
political
science
all
study
human
behavior.
Economics
differs
from
these
other
social
sciences
because
it
also
addresses
these
three
key concepts:
______________.
-
ANS Optimization,
equilibrium,
and
empiricism.
HW-CH1
Suppose
your
New
Year
resolution
is
to
get
back
in
shape.
You
are
considering
various
ways
of
doing this:
you
can
sign
up
for
a
gym membership,
walk
to work,
take
the
stairs
instead
of
the elevator,
or
watch
your
diet.
How
would
you
evaluate
these
options
and
choose
an
optimal one?
When
making
your
decision
about
which
activity
to choose,
you
should
consider
the
monetary
cost_______
the
opportunity
cost
of
the
activities.
The
goal
is
to
choose
the
option
that
offers
the
greatest
____________.
-
ANSDo
a cost-benefit
analysis
to
compare
the
alternatives.
as
well
as;
net
benefit.
HW-CH1
During
the
process
of
optimization
economists
believe
that
people
are
considering _________.
The
goal
of
optimization
for
an
individual
is
to
maximize
______________.
-
ANSthe
feasibility
of
a choice,
given
the
information
available
at
the
time.
overall
well-being
HW-CH1
Suppose
that
you
allocate $20
each
week
for
your
entertainment
budget.
This
money
is
spent
on
two items:
either
renting
movies
for $1
each
at
Redbox
or
downloading
songs
from
iTunes
at $1
each.
Given
this information,
which
of
the
following
would
represent
your
budget
constraint
for entertainment? Your
budget
constraint
for
entertainment
illustrates
the
concept
of
_________________ ,
since
as
you
increase
your
purchases
of
one item,
you
__________________.
-
ANSAmount
spent
on
iTunes +
Amount
spent
at
Redbox =
$20.
trade-offs;
must
decrease
your
purchases
of
the
other
item
HW-CH1
The
opportunity
cost
of
an
activity
is
a
measure
of
_______________
when
you
do
that
activity. Let's
say
that
you
are
trying
to
decide
what
to
do
on
Friday
at
11
a.m.
You
rank
your
possible
options
from
the
one
you
value
the
most
to
the
one
that
you
value
the
least
in
the
following order:
going
to class,
sleeping
in late,
going
to
work early,
getting lunch,
going
to
the
gym
to exercise,
and
watching
television.
If
you
decide
to
go
to class,
then
what
do
we
know
about
the
opportunity
cost
of
your decision?
-
ANSwhat
is
given
up
The
opportunity
cost
would
be
sleeping
in late,
since
it
was
your next-best
option.
HW-CH1
Comparing
a
set
of
feasible
alternatives
and
picking
the
best
one
is
an
optimization
process
called _________.
When
deciding
whether
to
install
visible
countdown
timers
for
pedestrians
at crosswalks,
which
of
the
following
would
be
considered
in
the cost-benefit
analysis? (Check
all
that
apply. )
-
ANS cost-benefit
analysis.
A.)
The
value
of
the
lives
lost
by
drivers
who
watch
the
countdown
timers
and
try
to
make
it
through
a
light.
B.)
The
cost
in
terms
of
dollars
of
installing
these
new
timers
all
over
the
city.
C.)
The
value
of
the pedestrians'
lives
saved
by
having
the
timers
to
assist
in
crossing
the
street.
D.)The
higher
maintenance
bill
associated
with
fixing
these
more
complex
signals
when
they
break
down.
HW-CH1
Free
riding
occurs
when
________________
are
out
of
sync
with
_______________.
Which
of
the
following
is
subject
to
the free-rider
problem?
Which
of
the
following
is
more
susceptible
to
the free-rider
problem:
government-funded
symphonies
or
street
lights ?
-
ANSpeople's
private
benefits;
the
public
interest
A.)
A
neighborhood
watch.
B.)
National
security. C.)
Public
libraries.
Use
of
street
lights
is
more
susceptible
since
even
those
who don't
pay
taxes
still benefit,
while
government-funded
symphonies
can
charge
for
admission ,
so
that
everyone
who
goes
pays
their
share.
HW-CH1
For
a
market
to
be
in equilibrium,
three
conditions
must
hold.
Fill
in
the
blanks
below
to
complete
these
conditions.
The
amount
produced
by
sellers
must
be
______________the
amount
purchased
by
buyers.
The
costs
of
making
a
product
must
be
_________________
the
final
price
at
which
the
product
sells.
Buyers
must
place
a
value
on
the
uses
of
the
product
that
is
______________________
the
cost
of
buying
the
product.
-
ANSequal
to
less
than
greater
than
HW-CH1
Which
of
the
following
is
true
regarding
the
concept
of causation?
Which
of
the
following
is
NOT
an
example
of causation?
-
ANSIt
describes
how
one
event
can
bring
about
change
in
another.
Driving
without
car
insurance
will
lead
to
getting
into
an
accident.
HW-CH1
Identify
the
cause
and
effect
in
the
following examples:
Lower
infant
mortality
is
____________
and
an
improvement
in
nutrition
is
________________.
A
surge
in
cocoa
prices
is
_________________
and
a
pest
attack
on
the
cocoa
crop
is
________________.
-
ANSan
effect;
the
cause
an
effect;
the
cause
HW-CH1
In
which
of
the
following
areas
will
taking
an
economics
course
help
benefit
you
throughout
your life?
-
ANSA.
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