MACROECON EXAM 1

Macroeconomics is the study of

• market for goods and services
• dirt, land, water, minerals , air
• when you buy something you are casting a vote for the production of that good
• the whole economy

macroeconomists would study business cycles, inflation, and unemployment or productivity. T/F ?

• there are not enough resources to produce everyones want
• true
• the PPC is bowed out or concave to the origin
• the whole economy

macro from the word macroeconomics means large. T/F ?

• resources are privately owned by households
• true
• A curved line, with the middle portion pushed outward.
• the best place to operate is on the curve

The goals of stable inflation or stable prices and having maximum employment are measured and achieved on an individual level, not on an economy-wide level. T/F ?

• in recession
• money flow is inside flow and real flow is outside flow
• false
• to assign or divide up

which of the following statements is true ?

• increased productivity
• market - supply, businesses- demand
• the federal reserve's goals are determined and defined in macroeconomics concepts
• minimum amount it takes to keep the entrepreneur in business for her/himself

why does scarcity exists?

• two-good economy, all resources are efficiently utilized, technology or resources are fixed
• there are not enough resources to produce everyones want
• resources are privately owned by households
• income

example: Sal has many options for how to spend her afternoon: 1) go to the movie 2) go to the library 3) attend a baseball game 4) clean her apartment. Which is her opportunity cost of going to a movie ?

• going to the library
• money
• households
• some resources are better suited for some tasks than other

what is an opportunity cost ?

• money flow is inside flow and real flow is outside flow
• The most valued opportunity you give up when making a choice.
• those goods and services people are willing and able to buy
• "It's not from the benevolence of the butcher the Brewer or the Baker that we expect our dinner but from their regard to their own self-interest"

Because people have unlimited wants and limited resources they must, ....

• markets for goods and services
• make choices about which wants to satisfy
• The most valued opportunity you give up when making a choice.
• opportunity lost

because of .... people must make choices, and when they choose, they incur a(n)......

• households and businesses but product and resources
• the PPC is bowed out or concave to the origin
• scarcity; opportunity cost
• you from saving and spending the same dollar. You must choice