Microeconomics deals with - Study guides, Class notes & Summaries

Part One What Is Economics? This opening Part of the book provides an introduction to economics. The central themes of Chapter 1 are scarcity, choice, opportunity cost, and the self-organizing role of markets. The chapter also examines the gains from specialization and trade, the role of money, the effects of globalization, and ends with a discussion of the various types of economic systems. Chapter 2 examines how economists build their models and test their theories. It also addresses ce...

ECON 252 - Purdue University - Exam 1 Latest Update Graded A The definition of economics states that it is the study of how _________. A. agents choose to allocate scarce resources and the impact of those choices on society. B. money influences the economy in the short run and the long run. C. businesses make decisions and how those decisions impact other firms, the government, and consumers. D. the government determines policies, businesses set prices, and consumers choose how much to ...

1 Microeconomics deals with: • the working of the entire economy or large sectors of it. Incorrect • economic growth. Incorrect • individual decision makers in the economy. (True Answer )Correct • gross domestic product. Incorrect 2 The study of a single firm and how it determines prices would fall under the study of: • macroeconomics. Incorrect • microeconomics. (True Answer )Correct • economic growth. Incorrect • fiscal policy. Incorrect 3 Macroeconomics deal...

Chapter 01 The Economic Problem     
Multiple Choice Questions
  1. What do economists mean when they say that the economy faces scarcity? 
A. There are fewer resources available than there were in the 1960s.
B. It is quite evident that the world is running out of resources.
C. The economy is producing far below its capacity to produce.
D. The resources available are not sufficient to produce all that everyone wants.   
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A situation where people have unlimited wants but face limited resources is known as: A. Economic efficiency B. Factors of production C. Macroeconomics D. Scarcity correct answers D. Scarcity The branch of economics that focuses on the study of output, inflation, and unemployment is known as: A. Capital B. Labor C. Macroeconomics D. Microeconomics correct answers C. Macroeconomics Which of the following describes a situation most closely related to microeconomics? A. A busines...

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 ...

what is economics? - - the study of how people choose to allocate their scare resources - what and how choices are made - how the market system functions inflation - all costs of goods and services increase demand-pull inflation - incomes increase but supply remains constant cost-push inflation - production costs increase therefore costs increase recession - - slowdown in economic activity - 2 consecutive quarters of negative economic growth as measured by a country's GDP economies of s...

Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption. Microeconomics deals with prices and production in single markets and the interaction between different markets but leaves the study of economy-wide aggregates to macroeconomics

Microeconomics - Answer the study of the economy at the small-scale level, examining individuals and specifics markets -deals with individual households and markets (gasoline market) -how market prices are determined and how they will adjust to a variety of different events (weather and government regulation) Macroeconomics - Answer The study of the economy at the large-scale level, examining total output, the price level, and other aggregate measures of the economy -examines entire ec...

Economics - ANS>comes from the Greek word oikonomike - "one who manages the household." Mankiw - ANS>Economics is the study of how society manages its resources Hall and Leiberman - ANS>economics is the study of choice under the conditions of scarcity Castillo - ANS>economics as the study of how man could best allocate and utilize the scarce resources of society to satisfy his unlimited want Webster - ANS>economics as a branch of knowledge that deals with the production,...