Atf Fundamentals Micro Certification Complete Answer Guide

ATF FUNDAMENTALS MICRO CERTIFICATION
COMPLETE ANSWER GUIDE

◉ Macroeconomics focuses on individual consumers and individual
firms.
Answer: False — that's microeconomics. Macroeconomics studies
aggregate variables such as inflation, unemployment, and national
output.


◉ Economics deals with the allocation of scarce resources to satisfy
unlimited wants.
Answer: True


◉ Scarcity means that resources are unlimited.
Answer: False — resources are limited/scarce.


◉ Economics is often described as the science of constrained choice.
Answer: True


◉ Consumers face trade-offs because they cannot generally consume
unlimited amounts of all goods.
Answer: True

,◉ A model is a mathematical representation based on economic
theory.
Answer: True


◉ Positive analysis asks what should be done.
Answer: False — that's normative analysis.


◉ Normative analysis involves questions about what ought to be
done.
Answer: True


◉ Positive analysis describes cause-and-effect relationships.
Answer: True


◉ Comparative statics examines how a change in an exogenous
variable affects an endogenous variable.
Answer: True


◉ Equilibrium is a state that continues as long as exogenous factors
remain unchanged.
Answer: True

, ◉ Constrained optimization means choosing the best possible
option while taking restrictions into account.
Answer: True


◉ A market is a collection of buyers and sellers whose interactions
determine the price of a product or products.
Answer: True


◉ In a perfectly competitive market, one seller can significantly
influence the market price.
Answer: False


◉ A perfectly competitive market has many buyers and sellers.
Answer: True


◉ Market definition includes geographical boundaries and the range
of products included.
Answer: True


◉ Market definition is important for identifying actual and potential
competitors.
Answer: True