ECON 102 QUIZ 1

ECON 102 QUIZ 1. Economics is best defined as the study of A.financial decision-making B.how consumers make purchasing decisions. Correct C.choices made by people faced with scarcity. D.inflation, unemployment, and economic growth Answer Key: C Question 2 of 10 10.0/ 10.0 Points Macroeconomics differs from microeconomics in that A.macroeconomics is the study of individual markets, while microeconomics deals with the nation's economy as a whole. Correct B.microeconomics is the study of individual markets, while macroeconomics deals with the nation's economy as a whole. C.macroeconomics focuses principally on social and political issues, while microeconomics involves the study of a nation's monetary system. D.microeconomics focuses principally on social and political issues, while macroeconomics involves the study of a nation's monetary system. Answer Key: B Question 3 of 10 10.0/ 10.0 Points Gross domestic product calculations count only final goods and services because A.these are the only goods and services that are purchased in an economy. Correct B.counting all goods and services would lead to double-counting of many activities. C.it is difficult to measure the prices of intermediate goods produced. D.one cannot calculate the quantities of intermediate goods produced. Answer Key: B Question 4 of 10 0.0/ 10.0 Points Gross investment is A.what is left over from total new private investment after depreciation. Incorrect B.the total amount of private investment purchases, whether new or previously-existing. C.the total amount of new private investment purchases. D.the wear and tear on private investment.