Learning Outcomes - Economics

Economics is the study of how people allocate scarce resources, and it is divided into microeconomics, which focuses on individual markets, and macroeconomics, which examines the economy as a whole. Which of the following best distinguishes between microeconomics and macroeconomics?

• Microeconomics studies individual markets, while macroeconomics studies the entire economy.

• Microeconomics studies government policies, while macroeconomics studies household behavior.

• Microeconomics focuses on international trade, while macroeconomics focuses on local businesses.

• Microeconomics examines only inflation, while macroeconomics examines only unemployment.

Scarcity, choice, and opportunity cost are three fundamental economic concepts. Which of the following best describes these concepts?

• Scarcity means limited resources, choice involves selecting among alternatives, and opportunity cost is the value of the next best alternative forgone.

• Scarcity means unlimited resources, choice involves avoiding decisions, and opportunity cost is the value of all alternatives.

• Scarcity means having everything you want, choice means no decisions are needed, and opportunity cost does not exist.

• Scarcity means resources are always available, choice is unnecessary, and opportunity cost is irrelevant.

The three economic problems are:

• What to produce, how to produce, and for whom to produce.

• What to buy, how to sell, and where to invest.

• How to save, where to spend, and when to trade.

• Who to tax, how to borrow, and when to lend.

Economics is a social science study which concerns on how human beings allocate the limited resources in order to fulfill the ________ needs and demands.

• unlimited

• limited

• basic

• temporary

Economics can be subdivided into two branches. What are they?

• Macroeconomics and microeconomics

• Supply and demand

• Capitalism and socialism

• Inflation and deflation

Which branch of economics analyzes the specific economic units in detail such as households, firms, and government?

• A) Macroeconomics

• B) Microeconomics

Which branch of economics analyzes the aggregate behavior of the entire economy?

• A) Macroeconomics

• B) Microeconomics

The difference between microeconomics and macroeconomics is:

• Microeconomics studies individual markets, while macroeconomics studies the economy as a whole.

• Microeconomics focuses on government policies, while macroeconomics focuses on household decisions.

• Microeconomics deals with international trade, while macroeconomics deals with local businesses.

• Microeconomics is only about money, while macroeconomics is only about goods.

Which branch of economics seeks to understand the big picture rather than the details of individual choice?

• Microeconomics

• Macroeconomics

An example of a microeconomic issue is _________

• increase in price of sugar, production of canned pineapples

• national unemployment rate trends

• government fiscal deficit

• country's inflation rate