Macro Econ Final - John Lehning –
CACC questions well answered to pass
Which of the following best describes a monetary policy tool? - correct answer ✔✔interest rates
In a command economy, the ________________either makes most economic decisions itself or at least
strongly influences how the decisions are made. - correct answer ✔✔government
The circular flow diagram of economic activity is a model of the : - correct answer ✔✔flow of goods,
services, and payments between households and firms
Macroeconomics: - correct answer ✔✔is concerned with the expansion and contraction of the overall
economy
In a ______________________, most economic decisions about what to produce, how to produce it,
and for whom to produce it are made by buyers and sellers. - correct answer ✔✔market-oriented
econom
Macroeconomic topics do not usually include: - correct answer ✔✔the profit maximizing decisions of an
individual manufacturer
In a market-oriented economy, the amount of a good that is produced is primarily decided by the
interaction of: - correct answer ✔✔buyers and sellers
In countries like _________________ the command economy predominates. - correct answer ✔✔Cuba
and North Korea
_________________ - a term referring to the fact that for many goods, as the level of production
increases, the average cost of producing each individual unit declines. - correct answer ✔✔Economies of
Scale
,Which of the following is most likely a topic of discussion in macroeconomics? - correct answer ✔✔a
decrease in the unemployment rate
1. The model that economists use for illustrating the process of individual choice in a situation of scarcity
is the ___________________, sometimes also called the opportunity set, a diagram which shows what
choices are possible. - correct answer ✔✔budget constraint
As depicted in _____________________, it is necessary to give up some of one good to gain more of the
other good. - correct answer ✔✔the production possibilities frontier
Economists refer to this pattern, the ___________________, which means that as a person receives
more of a good, the additional or marginal utility from each additional unit of the good declines. -
correct answer ✔✔law of diminishing marginal utility
Most choices involve ______________, which involves comparing the benefits and costs of choosing a
little more or a little less of a good. - correct answer ✔✔marginal analysis
Attending college is a case where the ________________________ exceeds the monetary cost. - correct
answer ✔✔opportunity cost
"If I didn't have class tonight, I would save $4 campus parking fee and spend four hours at work where I
earn $10 per hour." The opportunity cost of attending class this evening is: - correct answer ✔✔$44
Philosophers draw a distinction between positive statements, which describe the world as it is, and
_______________s. - correct answer ✔✔normative statement
The lesson of __________ is to forget about the money that's irretrievably gone and instead to focus on
the marginal costs and benefits of future options. - correct answer ✔✔sunk costs
The general pattern that consumption of the first few units of any good tends to bring a higher level of
__________________ to a person than consumption of later units is a common pattern. - correct answer
✔✔utlity
, Scarcity implies that: - correct answer ✔✔it is impossible to completely fulfill the unlimited human
desire for goods and services with the limited resources available
__________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators
to keep prices from falling. - correct answer ✔✔Price floors
The downward slope of the demand curve again illustrates the pattern that as __________________
rises, ______________ decreases. - correct answer ✔✔price; quantity demanded
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the
_________________. - correct answer ✔✔law of demand
According to the law of supply: - correct answer ✔✔there is a direct relationship between price and
quantity supplied
If a firm faces ___________________________, while the prices for the input the firm produces remain
unchanged, a firm's profits will increase. - correct answer ✔✔lower costs of production
The term "ceteris paribus" means that: - correct answer ✔✔all variables except those specified are
constant
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied.
This is known as _______________. - correct answer ✔✔excess demand
A supply curve is a graphical illustration of the relationship between price, shown o the vertical axis, and
______________, sown on the horizontal axis. - correct answer ✔✔quantity
The nature of demand indicates that as the price of a good increases: - correct answer ✔✔buyers desire
to purchase less of it.
When economists talk about supply, they are referring to a relationship between price received for each
unit sold and the _______________. - correct answer ✔✔quantity supplied
CACC questions well answered to pass
Which of the following best describes a monetary policy tool? - correct answer ✔✔interest rates
In a command economy, the ________________either makes most economic decisions itself or at least
strongly influences how the decisions are made. - correct answer ✔✔government
The circular flow diagram of economic activity is a model of the : - correct answer ✔✔flow of goods,
services, and payments between households and firms
Macroeconomics: - correct answer ✔✔is concerned with the expansion and contraction of the overall
economy
In a ______________________, most economic decisions about what to produce, how to produce it,
and for whom to produce it are made by buyers and sellers. - correct answer ✔✔market-oriented
econom
Macroeconomic topics do not usually include: - correct answer ✔✔the profit maximizing decisions of an
individual manufacturer
In a market-oriented economy, the amount of a good that is produced is primarily decided by the
interaction of: - correct answer ✔✔buyers and sellers
In countries like _________________ the command economy predominates. - correct answer ✔✔Cuba
and North Korea
_________________ - a term referring to the fact that for many goods, as the level of production
increases, the average cost of producing each individual unit declines. - correct answer ✔✔Economies of
Scale
,Which of the following is most likely a topic of discussion in macroeconomics? - correct answer ✔✔a
decrease in the unemployment rate
1. The model that economists use for illustrating the process of individual choice in a situation of scarcity
is the ___________________, sometimes also called the opportunity set, a diagram which shows what
choices are possible. - correct answer ✔✔budget constraint
As depicted in _____________________, it is necessary to give up some of one good to gain more of the
other good. - correct answer ✔✔the production possibilities frontier
Economists refer to this pattern, the ___________________, which means that as a person receives
more of a good, the additional or marginal utility from each additional unit of the good declines. -
correct answer ✔✔law of diminishing marginal utility
Most choices involve ______________, which involves comparing the benefits and costs of choosing a
little more or a little less of a good. - correct answer ✔✔marginal analysis
Attending college is a case where the ________________________ exceeds the monetary cost. - correct
answer ✔✔opportunity cost
"If I didn't have class tonight, I would save $4 campus parking fee and spend four hours at work where I
earn $10 per hour." The opportunity cost of attending class this evening is: - correct answer ✔✔$44
Philosophers draw a distinction between positive statements, which describe the world as it is, and
_______________s. - correct answer ✔✔normative statement
The lesson of __________ is to forget about the money that's irretrievably gone and instead to focus on
the marginal costs and benefits of future options. - correct answer ✔✔sunk costs
The general pattern that consumption of the first few units of any good tends to bring a higher level of
__________________ to a person than consumption of later units is a common pattern. - correct answer
✔✔utlity
, Scarcity implies that: - correct answer ✔✔it is impossible to completely fulfill the unlimited human
desire for goods and services with the limited resources available
__________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators
to keep prices from falling. - correct answer ✔✔Price floors
The downward slope of the demand curve again illustrates the pattern that as __________________
rises, ______________ decreases. - correct answer ✔✔price; quantity demanded
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the
_________________. - correct answer ✔✔law of demand
According to the law of supply: - correct answer ✔✔there is a direct relationship between price and
quantity supplied
If a firm faces ___________________________, while the prices for the input the firm produces remain
unchanged, a firm's profits will increase. - correct answer ✔✔lower costs of production
The term "ceteris paribus" means that: - correct answer ✔✔all variables except those specified are
constant
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied.
This is known as _______________. - correct answer ✔✔excess demand
A supply curve is a graphical illustration of the relationship between price, shown o the vertical axis, and
______________, sown on the horizontal axis. - correct answer ✔✔quantity
The nature of demand indicates that as the price of a good increases: - correct answer ✔✔buyers desire
to purchase less of it.
When economists talk about supply, they are referring to a relationship between price received for each
unit sold and the _______________. - correct answer ✔✔quantity supplied
