Macroecon Vocab Quiz - Easy

What is the definition of scarcity in economics?

• Unlimited resources

• The limited nature of society's resources

• Abundance of goods

• Infinite supply

What is the formula for calculating the per unit opportunity cost (comparative advantage) of a problem that provides production data in terms of total units produced?

• Other good / Good being calculated (OOO = Output Other Over)

• Good being calculated / Other good (IOU = Input Other Under)

• Total cost / Total output

• Total revenue / Total cost

What does the Production Possibilities Curve (PPC) show?

• Trade-offs and opportunity costs between the production points of two goods

• The total production of a country

• The demand and supply of a single good

• The economic growth rate

What are PPC shifters?

• Change in resource quantity or quality, Change in technology,

• Change in consumer preferences, Change in income, Change in prices

• Change in government policy, Change in taxes, Change in subsidies

• Change in inflation rate, Change in interest rate, Change in employment

Which of the following is a supply shifter?

• Preferences

• Technology

• Income

• Number of buyers

What is the definition of the Unemployment Rate?

• % of labor force that is jobless and actively seeking work

• Total value of all final goods/services produced within a country’s borders in a year

• A measure of the level of prices of all new, domestically produced, final goods and services

• Shows expansion, peak, contraction, and trough of economic activity

What does the term MPC stand for?

• Marginal Propensity to Consume

• Marginal Propensity for Currency

• Marginal Propensity to Invest

• Marginal Propensity to Spend

What is the main goal of a Contractionary Fiscal Policy?

• To increase inflation by increasing government spending.

• To reduce inflation by decreasing government spending or raising taxes.

• To reduce inflation by increasing interest rates.

• To maintain inflation by keeping government spending constant.

What is the definition of a Non-Discretionary Policy?

• Deliberate use of fiscal policy to influence the economy.

• Automatic stabilizers that influence the economy without new government action.

• Policies that require new government action to influence the economy.

• Policies that have no influence on the economy.

Which of the following is a NOT an SRAS Shifter?

• Change in Technology

• Input prices

• Consumer Income

• Government subsidies