Macro Econ

Question 1

To obtain more than one thing, society sacrifices the opportunity of getting the next big thing

Answer 1

Opportunity costs

Question 2

The allocation of limited goods

Answer 2

Economics

Question 3

Comparisons of marginal benefits and marginal costs, usually for decision making

Answer 3

Marginal analysis

Question 4

Is concerned with making individual customers, workers, households, and business firms

Answer 4

Microeconomics

Question 5

Examines the performance and behavior of the economy as a whole

Answer 5

Macroeconomics

Question 6

A larger total output

Answer 6

Economic growth

Question 7

A particular set of institutional arrangements and a coordination mechanism- to respond to the economizing problem

Answer 7

Economic system

Question 8

Economic systems differ as to

Answer 8

Economic systems differ as to
1. Who owns the factors of production
2. The method used to motivate, coordinate, and direct economic activity

Question 9

Also known as the capitalist or the mixed economy

Answer 9

Market system

Question 10

Is characterized by the mixture of centralized government economy is incentives and decentralized actions taken by individuals and firms

Answer 10

Market system

Question 11

Place where buyers and sellers come together to buy and sell goods, services and resources

Answer 11

Markets

Question 12

Couples with the freedom to negotiate binding legal contracts, enables individuals and businesses to obtain, use, and dispose property resources as they see fit

Answer 12

Private property

Question 13

The determination by customers the types and quantities of a good and service that will be produced with the scarce resources of the economy

Answer 13

Customer sovergnty

Question 14

The tendency of competition to cause individuals and firms to unintentionally but quite effectively promote the interests of society even when each individual or firm is only attempting to pursue its own interests

Answer 14

Invisible hand

Question 15

Illustrates those flows for a simplified economy in which there is no government

Answer 15

The circular flow diagram

Question 16

All natural resources used in the production process

Answer 16

Land

Question 17

Resource consists of the physical actions and mental activities that people contribute to the production of goods and services

Answer 17

Labor

Question 18

All manufactured aids used in producing consumer goods and services

Answer 18

Capital

Question 19

To describe spending that pays for the production and accumulation of capital goods

Answer 19

Investment

Question 20

Do so indirectly by aiding the production of consumer goods

Answer 20

Capital good

Question 21

Land, labor, capital and entrepreneurial ability

Answer 21

Factors of production

Question 22

Special human resource distinct from labor

Answer 22

Entrepreneurial ability

Question 23

Is a schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase

Answer 23

Demand

Question 24

Its a downward slope reflects the law of demand-people buy more of a product, service or resource

Answer 24

Demand curve

Question 25

Products whose demand varies directly with money income

Answer 25

Normal income

Question 26

A good or service whose consumption declines as income rises, prices held constant

Answer 26

Inferior goods

Question 27

Is one that can be used in place of another good

Answer 27

Substitute good

Question 28

Is one that is used together with another good

Answer 28

Complementary good

Question 29

The principle that other things equal an increase in the price of a product will increase the quantity of it supplied and conversely for a price increase

Answer 29

Law of supply

Question 30

A curve that illustrates the supply for a product by showing how each possible price is associated with a specific quantity supplied

Answer 30

Supply curve

Question 31

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific price

Answer 31

Surplus

Question 32

A graph that demonstrate the flow of inputs and outputs

Answer 32

Circular-flow diagram

Question 33

There is a natural relationship between price and quantity demanded

Answer 33

Law of demand

Question 34

There’s possible relationships between price and quantity supply

Answer 34

Law of supply

Question 35

Capita

Answer 35

Per person

Question 36

recurring increases and decreases in the level of economic activity over periods of years: consists of peak, recession, through and expansion phases

Answer 36

Business cycles

Question 37

Gross domestic product adjusted for inflation

Answer 37

Real GDP

Question 38

Measured in terms of price level at time of measurements

Answer 38

Nominal GDP

Question 39

Expenditures that increase the volume of physical capital; and intangible ideas that help produce goods and services

Answer 39

Investment

Question 40

Sudden changes in demand

Answer 40

Demand shocks

Question 41

Sudden change in supply

Answer 41

Supply shocks

Question 42

Product prices that remain in place

Answer 42

Inflexible prices

Question 43

Product prices that freely more upward or downward when product demand and supply changes

Answer 43

Flexible prices

Question 44

y= C+ IG + G + XN

Answer 44

GDP equation

Question 45

C=

Answer 45

Personal consumption

Question 46

Spending by households on goods and services

Answer 46

Personal consumption

Question 47

IG=

Answer 47

Gross domestic product

Question 48

Spending on equipment, machinery, structures including new housing and changes in inventories

Answer 48

Gross domestic product

Question 49

G=

Answer 49

Gross investment

Question 50

Xn=

Answer 50

Exports minus imports