Macro 1.1-Scarcity MC Open Practice - Michael Burbine | Biblioteka

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Macroeconomics deals with:

the working of the entire economy.

how individuals make decisions.

government regulation of immigration laws.

the question of how a business unit should operate profitably.

bits and pieces of the economy.

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Microeconomics deals with:

the working of the entire economy or large sectors of it.

gross domestic product.

economic growth.

government economic policy to reduce unemployment.

individual decision-makers in the economy.

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If resources are “scarce” it means that:

they are probably not valued by consumers.

they have an unlimited supply.

they cannot provide enough goods or services to satisfy all human material wants and needs at zero cost.

it is impossible to create a supply of, or demand for, these resources.

they have no opportunity cost.

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Opportunity cost is:

the minimum price a consumer would be willing to pay for a product.

the monetary payment for a product.

about half of the monetary cost of a product.

the value of the best alternative forgone in making any choice.

the benefit derived from a product.

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Which of the following would be a positive economic statement?

Women should be paid as much as men for the same work.

There has been an increase in the rate of inflation.

Government has grown too large and should be reduced.

Government should be subject to the same rules as all other institutions.

Corporate CEO's are overcompensated and corrupt.

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Which of the following statements is a positive statement? Which is a normative statement? X. The federal minimum wage is increasing to $10 per hour. Y. The minimum wage should be high enough that families will not live in poverty. Z: A higher minimum wage typically increases the unemployment rate for teenagers.

X is positive; Y is normative; Z is positive

X is positive; Y is normative; Z is normative

X is positive; Y is positive; Z is positive

X is normative; Y is positive; Z is normative

X is normative; Y is normative; Z is normative

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In economics, whenever an individual choice is made:

marginal costs are greater than marginal benefits of that choice.

efficiency is always improved.

scarcity is not a problem.

the cost is easy to measure in dollar terms.

the cost of that choice could be referred to as opportunity cost.