1 - Intro Flashcards
In a world characterized by scarcity
people must make choices among alternatives.
The main functions of markets include
enabling buyers and sellers to get information about each other.
Which of the following newspaper headlines concerns a macroeconomic issue?
Why is Japan’s economy stagnant?
Opportunity cost is
the highest-valued alternative that we give up to get something.
Which one of the following topics does macroeconomics study?
the performance of the global economy
The problem of scarcity exists
in all economies.
Sally has to decide whether to study for her economics test or her accounting test. If she chooses to study for accounting, her opportunity cost of studying accounting is
studying economics.
Two variables are positively related if
increases in one are associated with increases in the other.
The slope of a straight line
is the same at every point.
The scientific purpose of simplifying assumptions in an economic model is to
abstract from the complexities of the real world those issues that are not important for the issues under examination.
The role of marginal analysis in the use of economics as a policy tool is to ________.
evaluate marginal benefit and marginal cost to find the solution that brings the greatest available gain
Which of the following sayings best describes opportunity cost?
“There’s no such thing as a free lunch.”
Which of the following statements is normative?
Scientists should not make normative statements.
Marginal cost
is the minimum price a producer must receive to induce him to offer one more unit of a good or service for sale.
Complete the following sentence. As you consume more and more of a good,
marginal benefit decreases.
