Macroeconomics--Hubbard and O'Brien
Chapter 1 Questions and Answers Verified by
Experts
Macroeconomics The study of the economy as a whole, including topics such as inflation,
unemployment, and economic growth.
scarcity A situation in which unlimited wants exceed the limited resources available to
fulfill those wants.
Economics The study of the choices people make to attain their goals, given their scarce
resources.
Economic model A simplified version of reality used to analyze real-world economic
situations.
Market A group of buyers and sellers of a good or service and the institution or
arrangement by which they come together to trade.
Marginal analysis Analysis that involves comparing marginal benefits and marginal costs.
Chapter 1 Questions and Answers Verified by
Experts
Macroeconomics The study of the economy as a whole, including topics such as inflation,
unemployment, and economic growth.
scarcity A situation in which unlimited wants exceed the limited resources available to
fulfill those wants.
Economics The study of the choices people make to attain their goals, given their scarce
resources.
Economic model A simplified version of reality used to analyze real-world economic
situations.
Market A group of buyers and sellers of a good or service and the institution or
arrangement by which they come together to trade.
Marginal analysis Analysis that involves comparing marginal benefits and marginal costs.
