MACROECONOMICS, EXAM 1
(MULTIPLE CHOICE) QUESTIONS &
VERIFIED ANSWERS RATED 100%
CORRECT
Economics is the study of... - CORRECT ANSWER How people use scarce resources
to satisfy unlimited wants
Oikonomia, the Greek word that is the root for Economics, might be best translated as...
- CORRECT ANSWER Stewardship
When choosing over the next best alternative due to trade offs faced, what is given up is
called the.. - CORRECT ANSWER Opportunity Cost
What do economists mean when they say that a good is scarce? - CORRECT
ANSWER The amount of the good that people would like exceeds the supply freely
available from nature.
How would an increase in consumer income affect the market for new furniture? -
CORRECT ANSWER Demand would increase, leading to an increase in price and an
increase in quantity sold.
If coffee and cream are compliments, a decrease in the price of coffee will cause... -
CORRECT ANSWER The demand for cream to increase
A nation's economy is growing at 3% per year. If GDP two years ago was $46 billion,
what GDP would you anticipate for this year? - CORRECT ANSWER $48.8 billion
An economy with no growth is... - CORRECT ANSWER Least appealing to new
workers who have limited experience
Economist Joseph Schumpeter suggest the the decay and decline of old, obsolete
industries is a natural and necessary part of innovation and economic growth. This
process is called... - CORRECT ANSWER Creative destruction
Which of the following does the Law of Demand specifically imply? - CORRECT
ANSWER If the product price increases, quantity demanded will decrease
(MULTIPLE CHOICE) QUESTIONS &
VERIFIED ANSWERS RATED 100%
CORRECT
Economics is the study of... - CORRECT ANSWER How people use scarce resources
to satisfy unlimited wants
Oikonomia, the Greek word that is the root for Economics, might be best translated as...
- CORRECT ANSWER Stewardship
When choosing over the next best alternative due to trade offs faced, what is given up is
called the.. - CORRECT ANSWER Opportunity Cost
What do economists mean when they say that a good is scarce? - CORRECT
ANSWER The amount of the good that people would like exceeds the supply freely
available from nature.
How would an increase in consumer income affect the market for new furniture? -
CORRECT ANSWER Demand would increase, leading to an increase in price and an
increase in quantity sold.
If coffee and cream are compliments, a decrease in the price of coffee will cause... -
CORRECT ANSWER The demand for cream to increase
A nation's economy is growing at 3% per year. If GDP two years ago was $46 billion,
what GDP would you anticipate for this year? - CORRECT ANSWER $48.8 billion
An economy with no growth is... - CORRECT ANSWER Least appealing to new
workers who have limited experience
Economist Joseph Schumpeter suggest the the decay and decline of old, obsolete
industries is a natural and necessary part of innovation and economic growth. This
process is called... - CORRECT ANSWER Creative destruction
Which of the following does the Law of Demand specifically imply? - CORRECT
ANSWER If the product price increases, quantity demanded will decrease
