Micro Ch_1 Vocab Quiz Principles of Microeconomics

What is a circular flow diagram?

• A model that shows the flow of goods and services and the interaction between households and firms

• A diagram that represents the water cycle

• A chart that illustrates the phases of the moon

• A graph that shows the relationship between supply and demand

What is a command economy?

• An economic system where the government makes all decisions regarding production and distribution.

• An economic system based on supply and demand with little government control.

• An economic system where businesses are owned by private individuals.

• An economic system that relies on barter and trade without the use of money.

What is the study of economics?

• The study of economics is the social science that analyzes the production, distribution, and consumption of goods and services.

• The study of economics is the science of weather patterns and climate change.

• The study of economics is the analysis of historical events and their impact on society.

• The study of economics is the examination of human anatomy and physiology.

What are economies of scale?

• The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

• The increase in costs that occurs when a company expands its production and operations.

• The financial benefits that a company receives from reducing its workforce.

• The economic theory that suggests that smaller companies are more efficient than larger ones.

What are exports?

• Goods and services sold to other countries

• Goods and services bought from other countries

• Domestic consumption of goods and services

• Government spending on infrastructure

What is fiscal policy?

• Government decisions on taxation and spending to influence the economy

• The regulation of interest rates and money supply by a central bank

• A policy that focuses on environmental regulations

• A strategy for managing a company's financial resources

What is globalization?

• The process of interaction and integration among people, companies, and governments worldwide

• A local economic policy

• A type of government system

• A cultural festival

What is gross domestic product (GDP)?

• The total value of goods and services produced within a country in a year.

• The total amount of money a country owes to other countries.

• The total number of people employed in a country.

• The total amount of foreign investment in a country.

What is a labour market?

• A place where workers and employers interact with each other

• A market where only goods are traded

• A financial market for trading stocks

• A marketplace for buying and selling real estate

What does macroeconomics focus on?

• macroeconomics focuses on the behavior and performance of an economy as a whole, including issues like inflation, unemployment, and economic growth.

• macroeconomics focuses on individual markets and the decision-making processes of households and firms.

• macroeconomics is primarily concerned with the study of financial markets and investment strategies.

• macroeconomics deals with the production and distribution of goods and services within a single industry.