Questions:
1. The basic difference between macroeconomics and micro is that - Answer- macroeconomics focuses on the aggregate economy, and microeconomics focuses on small components of that economy.
2. The unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics as - secondary effects.
3. People make decisions at the margin. Thus when deciding to purchase a second car, they would compare--- the additional benefits of the second car with the additional costs of the second car.
4. Scarcity implies that- it is impossible to completely fulfill the desire for goods and services with the limited resources available.
5. A fact based on observable phenomenon that is not influenced by differences in personal opinion is called-an objective concept.
6. The expression- theres not such thing as a free lunch means-the use of resources to meet one need means that t hose resources can no longer be used to meet another.
7. In economics the term marginal refers to-the change or difference between two alternatives
8. Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person---- confused association and causation.
9. A restaurant offers an all you can eat lunch buffet for $12. Jim has eaten 3 servings and is trying to decide whether or not to get a fourth serving if and only if.... I got this one wrong I put his marginal benefit of the additional service is at least $3.
10. People are willing to pay more for a diamond than for a bottle of water because-the marginal benefit of an extra diamond far exceeds the marginal benefit of an extra bottle of water
11. The opportunity cost of an action is-the value of the best opportunity that must be sacrificed in order to take the action.
12. Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase. Her decision would not change unless. I got this one wrong-I put the marginal benefit of teaching increased.
13. The difference between positive economic statements and normative economic statements is that-positive statements are based on fact while normative statements are based on opinion.
14. Which of the following is a positive economic statements? If taxes are over 50 percent of national income, job creation falls.
15. Which of the following could be considered to be a secondary effect caused by making drugs such as cocain illegal? All of the above would be considered secondary effects of making drugs illegal.
16. In economics the benefit or satisfaction that an individual gets from an activity is called- utility
17. Which of the following is consistent with the implications of the economic guidepost that information is costly to acquire? All of the above are consistent with the economic way of thinking
18. In economics, the statement, there is no such thing as a free lunch refers to which of the following- production of a good requires the use of scarce resources regardless of whether it is supplied free to the
19. Which of the following is a positive economic statement? I got this one wrongi put-the current unemployment rate is too high.
20. An opinion based on personal preferences and value judgments is called-I got this one wrong too I put an objective concept.