A friend wants to learn how the unemployment rate is calculated and how inflation is measured. He asks you which economics course to take and you advise him to enroll in
|either micro- or macroeconomics. They both concentrate equally on those issues.
|financial accounting because economics doesn't address those topics in its courses.
Which of the following is a microeconomic concern?
|the rate of economic growth in the United States
|the current unemployment rate in the United States
|national output of the United States
A decision is rational if
|enough of the action is undertaken to drive the marginal benefit to zero.
|the marginal cost of the action is less than marginal benefit.
|the marginal cost of the action is greater than opportunity cost.
|the marginal cost of the action is greater than marginal benefit.
|the marginal benefit of the action is less than opportunity cost.
Rose has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1) chat with her friends, (2) study economics or (3) take a nap. The opportunity cost of chatting with her friends is
|zero since she does not pay her friends to talk to her.
|the combined value of studying economics and taking a nap.
|the value of chatting with her friends.
|the value of studying economics, the next best use of time.
The marginal cost of a good is defined as
|what you must give up to get one more unit of something.
|what you are willing to give up to get one more unit of something.
|equaling the marginal benefit of the good.
|the value of all the alternatives forgone.
|the dollar cost of a good
The pleasure received from consuming one more unit of a good is called the
The US minimum wage should be increased to $20 an hour as a method of reducing poverty" is an example of
|a microeconomic argument.
|a positive statement.
|a factual statement.
a normative statement.
1. Ans: Macroeconomics
Macroecomics deals with the economic phenomenons like inflation, unemployment, general price level, national income, etc.
2. Ans: consumer behavior
Microeconomics is the study of individual decision making.
3. Ans: the marginal cost of the action is less than marginal benefit.
4. Ans: the value of studying economics, the next best use of time.
Opportunity cost refers to the forgone value of next best alternative.
5. Ans: what you must give up to get one more unit of something.
6. Ans: marginal benefit.
7. Ans: a positive statement.
Positive statements are objective statements that can be tested, amended or rejected by referring to the available evidence.
8. Ans: enables us visualize the relationship between two variables.
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