HW 1 Flashcards
In a command economy, the ______ makes most economic decisions itself or at least strongly influences how the decisions are made
government
In a _________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.
market-oriented economy
which of the following best denotes the reason for the existence of substantial black markets
a command economy
Which of the following is generally accepted as a valid criticism of the production of useful goods and services?
environmental pollution
In the ______, households receive goods and services and pay firms for them.
goods and services market
which of the following best describes a fiscal policy tool?
government spending
Which of the following is most likely a topic of discussion in macroeconomics?
a decrease in the unemployment rate
Macroeconomic topics do not usually include:
the profit maximizing decisions of an individual manufacturer
_____ can lead to an increase in overall production
Specialization
Philosophers draw a distinction between positive statements, which describe the world as it is, and __________ which describe the world as it should be.
Normative statements
Why is there scarcity?
because our unlimited wants exceed our limited resources
The opportunity cost of attending university is likely to include all except:
the cost of haircuts received during the term; in income you forgo in order to attend classes; tuition fees; and the cost of textbooks
the cost of haircuts received during the school term
the opportunity cost of an action
is a subjective valuation that can be determined only by the individual who chooses the action
