for Macroeconomics A Contemporary Introduction by McEachern William Verified Questions with 100 Correct Answers Graded A
Macroeconomics A Contemporary Introduction by McEachern William Question Set | Test-Ready Solutions Pack What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economic - answer - a resource is scarce when the amount people desire exceeds the amount available at a price of zero. the concept of scarcity is important to the definition of economics because scarcity forces people to choose how they will use their resources in an attempt to satisfy their unlimited wants and desires. Economics is about making choices. Without scarcity, there would be no economic problem and therefore no need to choose between competing wants and desires To which category of resources does each of the following belong? a. A taxi b. Computer software c. One hour of legal counsel d. A parking lot e. A forest f. The Mississippi River g. An individual introducing a new way to market products on the Internet - answer - a. capital b. capital c. labor d. capital and natural resources e. natural resources f. natural resources g. entrepreneurial ability Explain why each of the following would not be considered "free" for the economy as a whole: a. Food vouchers b. U.S. aid to developing countries c. Corporate charitable contributions d. Non-cable television programs e. Public high school education - answer - a. producing the food needs resources and has a cost b. Cost to the US c. Cost to the corporation for the gifts d. "Free" TV is paid for by consumers through the higher prices of the products advertised there e. paid for by the citizens Which group of economic decision makers plays the leading role in the economic system? Which groups play supporting roles? In what sense are they supporting actors? - answer - the main decisions makers are households with firms, governments, and the rest of the world serving as supporting actors. Households are considered to be the lead actors since they supply resources used in production, and demand goods and services produced by other actors. firms, governments and the rest of the world are supporting actors because they demand the resources that households supply and use them to produce and supply the goods that households demand Determine whether each of the following is primarily a microeconomic or a macroeconomic issue: a. What price to charge for an automobile b. Measuring the impact of tax policies on consumer spending in the economy c. Your family's decisions about what to buy d. A worker deciding how much to work each week e. Designing a government policy to increase total employment - answer - a. micro b. macro c. micro d. micro e. macro Some economists believe that to under- stand macroeconomics, you must first understand microeconomics. How does microeconomics relate to macroeconomics? - answer - micro studies the behavior and choices made by individuals. the behavior and choices made by these individuals is added together to determine the economy wide or macroeconomic measures such as total production and unemployment. Micro studies the individual pieces of the economic puzzle, macro fits those pieces together Determine whether each of the following statements is normative or positive: a. The U.S. unemployment rate was 6.2 percent in 2014. b. The inflation rate in the United States is too high. c. The U.S. government should increase the minimum wage. d. U.S. trade restrictions cost consumers $100 billion annually. - answer - a. positive - can be checked with data b. normative - no measurement c. normative - no measurement d. positive - can be checked with data What good is economic theory if it can't predict the behavior of a specific individual? - answer - economics attempts to describe and explain human behavior and can not measure and control for all factors influencing behavior Discuss the impact of rational self- interest on each of the following decisions: a. Whether to attend college full time or enter the workforce f
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