Macroeconomics Chapters 1-5
Questions And Answers With Correct
Update
What nare nthe nthree ncore nchoices nin nthe neconomy? n- nAnswer n- nwhat, nhow, nand nfor nwhom
Define n"economy". n- nAnswer n- nthe ngrand nsum nof nall nproduction nand nconsumption nactivities
Define n"scarcity". n- nAnswer n- nthe nlimitation nof na nnation's nresources
What nare nthe nfour nbasic nfactors nof nproduction? n- nAnswer n- nland, nlabor, ncapital, nand
nentrepreneurship
Define n"economics". n- nAnswer n- nthe nstudy nof nhow npeople nuse nscarce nresources
Define n"opportunity ncost". n- nAnswer n- nwhat nis ngiven nup nto nget nsomething nelse
What ndoes nthe nlaw nof nincreasing nopportunity ncost nstate? n- nAnswer n- nWe nmust ngive nup never-
increasing nquantities nof nother ngoods nand nservices nin norder nto nget nmore nof na nparticular ngood.
Define n"efficiency". n- nAnswer n- nsqueezing nmaximum noutput nout nof navailable nresources
Are noutput ncombinations noutside nof nthe nproduction npossibilities ncurve nattainable nor
nunattainable? n- nAnswer n- nunattainable
What ntype nof neconomy ndo nconservatives nsupport? n- nAnswer n- nlaissez nfaire n(resist nwork nplace
nregulation, nprice ncontrols, nand nminimum nwage)
, What ntype nof neconomy ndo nliberals nsupport? n- nAnswer n- ngovernment nintervention n(argue nthat
nresistance nof nwork nplace nregulation, nprice ncontrols, nand nminimum nwage ntemper nthe nexcesses
nof nthe nmarket)
Define n"macroeconomics". n- nAnswer n- nallocating nthe nresources nof nan nentire neconomy nto
nachieve naggregate neconomic ngoals
Define n"microeconomics". n- nAnswer n- nbehavior nand ngoals nof nindividual nmarket nparticipants
Give nthe nbasic ndefinition nof neconomics. n- nAnswer n- nthe nscarcity nof nresources
What nis nthe nequation nfor nopportunity ncost? n- nAnswer n- nwhat nyou ngive nup ndivided nby nwhat
nyou nget
Who nis nthe ngrandfather nof neconomics nand nsupports nlaissez nfaire neconomy? n- nAnswer n- nAdam
nSmith
Who nis nthe nfather nof nmodern nCommunism? n- nAnswer n- nKarl nMarx
Who nsupports nthe nmixed neconomy? n- nAnswer n- nJohn nMaynard nKeynes
Define n"gross ndomestic nproduct n(GDP)". n- nAnswer n- nthe ntotal nmarket nvalue nof nall nthe ngoods
nand nservices na nnation nproduces nin na nyear
Define n"per ncapita nGDP". n- nAnswer n- nhow nmuch noutput nthe naverage nperson nwould nget nif nall
noutput nwere ndivided nevenly namong nthe npopulation
Define n"human ncapital". n- nAnswer n- nthe nskills nand nknowledge nof nworkers
Define n"capital nintensive". n- nAnswer n- nproduction nprocesses nthat nuse na nhigh nratio nof ncapital nto
nlabor ninputs n(i.e. nmachines nand ntechnology)
Questions And Answers With Correct
Update
What nare nthe nthree ncore nchoices nin nthe neconomy? n- nAnswer n- nwhat, nhow, nand nfor nwhom
Define n"economy". n- nAnswer n- nthe ngrand nsum nof nall nproduction nand nconsumption nactivities
Define n"scarcity". n- nAnswer n- nthe nlimitation nof na nnation's nresources
What nare nthe nfour nbasic nfactors nof nproduction? n- nAnswer n- nland, nlabor, ncapital, nand
nentrepreneurship
Define n"economics". n- nAnswer n- nthe nstudy nof nhow npeople nuse nscarce nresources
Define n"opportunity ncost". n- nAnswer n- nwhat nis ngiven nup nto nget nsomething nelse
What ndoes nthe nlaw nof nincreasing nopportunity ncost nstate? n- nAnswer n- nWe nmust ngive nup never-
increasing nquantities nof nother ngoods nand nservices nin norder nto nget nmore nof na nparticular ngood.
Define n"efficiency". n- nAnswer n- nsqueezing nmaximum noutput nout nof navailable nresources
Are noutput ncombinations noutside nof nthe nproduction npossibilities ncurve nattainable nor
nunattainable? n- nAnswer n- nunattainable
What ntype nof neconomy ndo nconservatives nsupport? n- nAnswer n- nlaissez nfaire n(resist nwork nplace
nregulation, nprice ncontrols, nand nminimum nwage)
, What ntype nof neconomy ndo nliberals nsupport? n- nAnswer n- ngovernment nintervention n(argue nthat
nresistance nof nwork nplace nregulation, nprice ncontrols, nand nminimum nwage ntemper nthe nexcesses
nof nthe nmarket)
Define n"macroeconomics". n- nAnswer n- nallocating nthe nresources nof nan nentire neconomy nto
nachieve naggregate neconomic ngoals
Define n"microeconomics". n- nAnswer n- nbehavior nand ngoals nof nindividual nmarket nparticipants
Give nthe nbasic ndefinition nof neconomics. n- nAnswer n- nthe nscarcity nof nresources
What nis nthe nequation nfor nopportunity ncost? n- nAnswer n- nwhat nyou ngive nup ndivided nby nwhat
nyou nget
Who nis nthe ngrandfather nof neconomics nand nsupports nlaissez nfaire neconomy? n- nAnswer n- nAdam
nSmith
Who nis nthe nfather nof nmodern nCommunism? n- nAnswer n- nKarl nMarx
Who nsupports nthe nmixed neconomy? n- nAnswer n- nJohn nMaynard nKeynes
Define n"gross ndomestic nproduct n(GDP)". n- nAnswer n- nthe ntotal nmarket nvalue nof nall nthe ngoods
nand nservices na nnation nproduces nin na nyear
Define n"per ncapita nGDP". n- nAnswer n- nhow nmuch noutput nthe naverage nperson nwould nget nif nall
noutput nwere ndivided nevenly namong nthe npopulation
Define n"human ncapital". n- nAnswer n- nthe nskills nand nknowledge nof nworkers
Define n"capital nintensive". n- nAnswer n- nproduction nprocesses nthat nuse na nhigh nratio nof ncapital nto
nlabor ninputs n(i.e. nmachines nand ntechnology)
