Macroeconomics Openstax 1-3 & 6-9 UPDATED
ACTUAL QUESTIONS WITH CORRECT ANSWERS
Question 1.
Scarcity
ANSWER
Limited quantities of resources to meet unlimited wants
Question 2.
GDP
ANSWER
Gross Domestic Product- the total market value of all final goods and services produced
annually in an economy
Question 3.
GDP per capita
ANSWER
GDP divided by population
Question 4.
GDP deflator
ANSWER
Nominal GDP/Real GDP x 100
Question 5.
unemployment
ANSWER
the number of people who are actively looking for work but aren't currently employed
,Question 6.
Inflation
ANSWER
a general increase in prices and fall in the purchasing value of money.
Question 7.
GDP formula
ANSWER
C+I+G+(X-M)
Question 8.
Homo Economicus
ANSWER
a term used to describe a person who would make rational decisions in ways predicted by
economic theories
Question 9.
Economics
ANSWER
The study of how people seek to satisfy their needs and wants by making choices
Question 10.
opportunity cost
ANSWER
the most desirable alternative given up as the result of a decision
Question 11.
Adam Smith
ANSWER
Wrote Wealth of Nations, father of Economics
, Question 12.
Who is the father of economics?
ANSWER
Adam Smith
Question 13.
Who wrote The Wealth of Nations?
ANSWER
Adam Smith
Question 14.
The Invisible Hand
ANSWER
A phrase coined by Adam Smith to describe the process that turns self-directed gain into social
and economic benefits for all
Question 15.
division of labor
ANSWER
Division of work into a number of separate tasks to be performed by different workers
Question 16.
allocation of resources
ANSWER
-how much of each good is produced
-which producers produce it
-which consumers consume it
ACTUAL QUESTIONS WITH CORRECT ANSWERS
Question 1.
Scarcity
ANSWER
Limited quantities of resources to meet unlimited wants
Question 2.
GDP
ANSWER
Gross Domestic Product- the total market value of all final goods and services produced
annually in an economy
Question 3.
GDP per capita
ANSWER
GDP divided by population
Question 4.
GDP deflator
ANSWER
Nominal GDP/Real GDP x 100
Question 5.
unemployment
ANSWER
the number of people who are actively looking for work but aren't currently employed
,Question 6.
Inflation
ANSWER
a general increase in prices and fall in the purchasing value of money.
Question 7.
GDP formula
ANSWER
C+I+G+(X-M)
Question 8.
Homo Economicus
ANSWER
a term used to describe a person who would make rational decisions in ways predicted by
economic theories
Question 9.
Economics
ANSWER
The study of how people seek to satisfy their needs and wants by making choices
Question 10.
opportunity cost
ANSWER
the most desirable alternative given up as the result of a decision
Question 11.
Adam Smith
ANSWER
Wrote Wealth of Nations, father of Economics
, Question 12.
Who is the father of economics?
ANSWER
Adam Smith
Question 13.
Who wrote The Wealth of Nations?
ANSWER
Adam Smith
Question 14.
The Invisible Hand
ANSWER
A phrase coined by Adam Smith to describe the process that turns self-directed gain into social
and economic benefits for all
Question 15.
division of labor
ANSWER
Division of work into a number of separate tasks to be performed by different workers
Question 16.
allocation of resources
ANSWER
-how much of each good is produced
-which producers produce it
-which consumers consume it
