Macroeconomics Exam Questions and Answers Latest Update Graded A+
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Macroeconomics
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Macroeconomics
Macroeconomics Exam Questions and Answers Latest Update Graded A+
opportunity cost - Answers Cost of the next best alternative use of money, time, or resources when one choice is made rather than another
marginal decisions - Answers the decisions of what to do with the next ton of pollution, the ...
Macroeconomics Exam Questions and Answers Latest Update Graded A+
opportunity cost - Answers Cost of the next best alternative use of money, time, or resources when one
choice is made rather than another
marginal decisions - Answers the decisions of what to do with the next ton of pollution, the next hour of
free time, and the next dollar of spending money, ect
EXAMPLE;
An educational software company wants to expand number of economics questions that it offers and is
considering hiring another economist. it compares how much adding another worker will improve the
product with the additional cost.
resource scarcity - Answers is the idea that things are finite. Because resources aren\'t unlimited, people
have to make choices about how to use best use them. Someone allocating their time between eating,
exercising, and watching TV is an example of resource scarcity. Here, time is the scarce resource. Note
that resource scarcity and opportunity cost are closely related in that opportunity cost is a direct result
of resources being scarce.
example;
Eva finds that there is not enough time after work to have dinner, exercise, and watch TV, and she must
make choices about how to use her limited time.
advantage - Answers Benefit
comparative advantage - Answers The ability of a country or firm to produce a particular good or service
more efficiently than other goods or services, such that its resources are most efficiently employed in
this activity. The comparison is to the efficiency of other economic activities the actor might undertake,
not to the efficiency of other countries or firms.
true - Answers countries specialize in the production of goods for with they have a comparative
advantage.
true - Answers it can be mutually beneficial for two nations to specialize in goods for which they have a
comparative advantage and then trade with one another.
false - Answers absolute advantage is the source of the potential gains from specialization and trade.
false - Answers a nation will not have a comparative advantage in a production if t does not also have an
absolute advantage in the production of that good.
false - Answers the process of specialization and trade has positive net benefits and is therefore
beneficial to everyone.
statement say something about how THE WORLD OUGHT TO BE - Answers normative
, statement say something that DESCRIBES how the world currently is - Answers positive
normative economics - Answers the richest 1% of americans should pay more taxes than the rest of the
99%
positive economics - Answers a decrease in the supply of coconut will increase the price of german
chocolate cake, a good which requires coconut shavings as a key ingredient
positive economics - Answers the higher the minimum wage, the higher the price of goods and services
is likely to be
normative economics - Answers social welfare spending in sweden occupies too large a portion of the
national budget.
is not in the area of microeconomic study - Answers does hosting the Olympics decrease the
unemployment rate?
microeconomics - Answers Study of a single factor of an economy - such as individuals, households,
businesses, & industries - rather than an economy as a whole.
macroeconomics - Answers Concentrates on the operation of a nation's economy as a whole.
analyses the economy as a whole. For example it considers the overall numbers employed in an
economy. It deals therefore with topics such as inflation, unemployment, economic growth and
international trade.
peak - Answers the height of an economic expansion, when real GDP stops rising
expansion - Answers in increase in size and power, A period of economic growth as measured by a rise in
real GD.
recession - Answers A slowdown in a nation's economy
A period during which aggregate output declines. Conventionally, a period in which aggregate output
declines for two consecutive quarters.
trough - Answers Lowest point of a wave
GDP - Answers Gross Domestic Product- the total market value of all final goods and services produced
annually in an economy
business cycle peak - Answers the point at which the economy turns from expansion to recession
self regulating - Answers the view that in an economy problems such as unemployment would be
corrected through the working of the invisible hand and that government attempts to improve the
economy's performance would be ineffective at best - and would probably make things worse
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