ECON 252 - Purdue University - Exam 1 Latest Update Graded A

ECON 252 - Purdue University - Exam 1 Latest Update Graded A The definition of economics states that it is the study of how _________. A. agents choose to allocate scarce resources and the impact of those choices on society. B. money influences the economy in the short run and the long run. C. businesses make decisions and how those decisions impact other firms, the government, and consumers. D. the government determines policies, businesses set prices, and consumers choose how much to buy. A. agents choose to allocate scarce resources and the impact of those choices on society. Economics is divided into two broad fields of study: microeconomics and macroeconomics. Microeconomics studies _________, while macroeconomics studies _________. A. economy-wide phenomena; decisions made by the government. B. a small piece of the overall economy; the economy as a whole. C. issues relating to businesses; choices made by individuals and consumers. D. money; policy. B. a small piece of the overall economy; the economy as a whole. Policy decisions made by the government are analyzed by _________. A. only macroeconomics. B. neither microeconomics nor macroeconomics. C. both microeconomics and macroeconomics. d. only microeconomics. C. both microeconomics and macroeconomics. A policy such as pollution regulations on steel plants would be studied under (microeconomics, macroeconomics), since it deals with (a small part of the overall economy, the economy as a whole). microeconomics, a small part of the overall economy Which of the following statements would not be considered a positive statement? A. The growth rate of college tuition for 2013 minus 2014 was 2.9 percent. B. The highest annual unemployment rate in the last 10 years was 9.6 percent. C. Tuition at 4 minus year universities is too high and should be lowered. D. The U.S. automobile industry had its highest growth in 5 years in 2012. C. Tuition at 4 minus year universities is too high and should be lowered. The statement that the U.S. government should increase carbon taxes to reduce carbon emissions that cause global warming is ___________. A. a positive statement, since most studies ha