ECON 252 - Purdue University - Exam 1 Questions With Correct Answers | 100% VERIFIED

ECON 252 - Purdue University - Exam 1 Questions With Correct Answers | 100% VERIFIED The definition of economics states that it is the study of how _________. A. agents choose to allocate scarce resources and the impact of those choices on society. B. money influences the economy in the short run and the long run. C. businesses make decisions and how those decisions impact other firms, the government, and consumers. D. the government determines policies, businesses set prices, and consumers choose how much to buy. - ANSWER A. agents choose to allocate scarce resources and the impact of those choices on society. Economics is divided into two broad fields of study: microeconomics and macroeconomics. Microeconomics studies _________, while macroeconomics studies _________. A. economy-wide phenomena; decisions made by the government. B. a small piece of the overall economy; the economy as a whole. C. issues relating to businesses; choices made by individuals and consumers. D. money; policy. - ANSWER B. a small piece of the overall economy; the economy as a whole. Policy decisions made by the government are analyzed by _________. A. only macroeconomics. B. neither microeconomics nor macroeconomics. C. both microeconomics and macroeconomics. d. only microeconomics. - ANSWER C. both microeconomics and macroeconomics.