final review

Which of the following is generally accepted as a valid criticism of the production of useful goods and services?

• government involvement

• the black market

• environmental pollution

• economic freedom

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

• all consumers

• buyers and sellers

• producers and input suppliers

• producers and government planning committees

Macroeconomic topics do not usually include:

• the profit maximizing decisions of an individual manufacturer.

• the rate of inflation

• the rate of unemployment

• economic growth

In the ____________, households work and receive payment from firms.

• financial investment market

• financial capital market

• labor market

• savings market

The basic difference between macroeconomics and microeconomics is:

• microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.

• microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms.

• microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.

• microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

Which one looks at the big picture

• Macroeconomics

• Microeconomics

Is the product market(goods market) and the factor market(AKA resource market) the same thing?

• True

• False

In the circular flow model looking at just firms and households.  Do physical goods and money flow in the same direction?

• True

• False

Choose the correct statement concerning natural disasters.

• They create jobs at the expense of other jobs, and they destroy wealth

• They create jobs, and create wealth

• They destroy jobs, but create wealth

• They destroy jobs, and destroy wealth

If a window gets broken and somebody says, 'do not fret, this creates wealth because it creates a job for the glass maker'.  What is that an example of:

• Broken Window Fallacy

• Scarcity

• Choices

• Production Possibilities Frontier