Principles of Macroeconomics
Exam Questions with Answers
scarcity - Correct Answers: the limited nature of society's resources
economics - Correct Answers: the study of how people allocate their limited resources to satisfy their
nearly unlimited wants
microeconomics - Correct Answers: the study of the individual units that make up the economy
macroeconomics - Correct Answers: the study of the overall aspects and workings of an economy, such
as inflation, growth, employment, interest rates, and the productivity of the economy as a whole
incentives - Correct Answers: factors that motivate you to act or to exert effort
opportunity cost - Correct Answers: the highest-valued alternative that must be sacrificed in order to get
something else
economic thinking - Correct Answers: involves a purposeful evaluation of the available opportunities to
make the best decision possible
marginal thinking - Correct Answers: requires decision-makers to evaluate whether the benefit of one
more unit of something is greater than its cost
markets - Correct Answers: bring buyers and seller other to exchange goods and services
trade - Correct Answers: the voluntary exchange of goods and services between two or more parties
comparative advantage - Correct Answers: refers to the situation in which an individual, business, or
country can produce at a lower opportunity cost than a competitor can
Exam Questions with Answers
scarcity - Correct Answers: the limited nature of society's resources
economics - Correct Answers: the study of how people allocate their limited resources to satisfy their
nearly unlimited wants
microeconomics - Correct Answers: the study of the individual units that make up the economy
macroeconomics - Correct Answers: the study of the overall aspects and workings of an economy, such
as inflation, growth, employment, interest rates, and the productivity of the economy as a whole
incentives - Correct Answers: factors that motivate you to act or to exert effort
opportunity cost - Correct Answers: the highest-valued alternative that must be sacrificed in order to get
something else
economic thinking - Correct Answers: involves a purposeful evaluation of the available opportunities to
make the best decision possible
marginal thinking - Correct Answers: requires decision-makers to evaluate whether the benefit of one
more unit of something is greater than its cost
markets - Correct Answers: bring buyers and seller other to exchange goods and services
trade - Correct Answers: the voluntary exchange of goods and services between two or more parties
comparative advantage - Correct Answers: refers to the situation in which an individual, business, or
country can produce at a lower opportunity cost than a competitor can
