question
A good economic model
answer
helps you understand or predict the economic world around you.
question
Gina missed her shift at the restaurant in order to attend a soccer game. She paid $30 for the ticket, $20 for parking, and ate $10 worth of popcorn. Had she worked her shift, Gina would have earned $100. Her money cost of attending the game is
answer
$60
question
Businesses are buyers and households are sellers in output markets.
answer
False
question
Lydia is deciding whether to study for her economics test or her accounting test. If she chooses to study accounting, her opportunity cost is
answer
studying economics.
question
Normative statements involve value judgments.
answer
True
question
Macroeconomics analyzes
answer
the performance of the national economy and the global economy.
question
In the circular flow of economic life, the role that only governments can play is to
answer
set the rules of the game.
question
Which headline is about macroeconomics?
answer
Japan's economy still stagnating
question
Economics is about
answer
making choices because of scarcity.
question
Inputs in the circular flow of economic life include
answer
people
question
Canada and Chile produce both oil and apples using labour only. A barrel of oil can be produced with 4 hours of labour in Canada and 8 hours of labour in Chile. A bushel of apples can be produced with 8 hours of labour in Canada and 12 hours of labour in Chile. Chile has
answer
a comparative advantage in producing apples.
question
In a world of scarcity,
answer
you must make choices among alternatives.
question
The true cost of any choice is the cost of the best alternative given up.
answer
True
question
Economics is about overcoming scarcity.
answer
False
question
Which statement is normative?
answer
Everyone is entitled to his or her own opinion.
question
The three sets of players in the circular flow of economic life include
answer
governments.
question
Businesses are sellers and households are buyers in input markets.
answer
False
question
Specializing and trading makes us all better off.
answer
True
question
Opportunity cost measures the cost of
answer
the best alternative given up.
question
Normative statements
answer
involves value judgements; statements about what ought to be
ex. unemployment rate should be less than 7.8%
ex. unemployment rate should be less than 7.8%
question
The opportunity cost of attending college
answer
depends on what you could earn now.
question
Monthly Production Possibilities for a Country Producing Only Hockey Sticks and Maple Leaves
Possibility Hockey Sticks ML
A. 3. 0.
B. 2. 3.
C. 0. 9.
Possibility Hockey Sticks ML
A. 3. 0.
B. 2. 3.
C. 0. 9.
answer
a combination of 3 hockey sticks and 9 maples leaves is not possible.
question
In one hour, Chloe can bake 24 cookies or 12 blueberry muffins; Zabeen can bake 6 cookies or 2 blueberry muffins. Which statement is true?
answer
Chloe's opportunity cost of a muffin is 2 cookies.
question
Scarcity means every choices involves a trade-off.
answer
True
question
Mutual gains from voluntary trade require differences in
answer
comparative advantage.
question
Smart choices require that
answer
additional benefits exceed additional costs.
question
Mutually beneficial trade occurs if both persons
answer
increase production of the product for which they have a comparative advantage.
question
Positive statements are
answer
evaluated by checking the facts.
question
Households are buyers in input markets.
answer
False
question
The inability to satisfy all of our wants is called the problem of
answer
scarcity.
question
Input Markets
answer
markets in which resources used to produce goods and services are exchanged
question
Output Markets
answer
The markets in which goods and. services are exchanged
question
Mutually beneficial trade occurs if both persons
answer
...
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
