Studies human behavior when scarcity exists and choices must be made
Provides the only reasonable explanation of how people make decisions
Is better at showing the way things ought to be than the other social sciences are
Is the only social science that can explain the existence and behavior of public institutions
The behavior of large firms in the marketplace
The economic behavior of individual decision makers
The behavior of the economy as a whole
The actions and reactions of the rest of the world
The impact of aggregate demand on recession.
The reasons for the increase in the price of a soft drink.
The effect that money supply has on the interest rate.
The tradeoff between inflation and unemployment.
Description of all variables affecting a situation.
Positive analysis of all variables affecting an event.
Simplified description of reality to understand and predict an economic event.
Prediction based on historical evidence.
Only in terms of money spent
As the sum of the values of all alternatives not chosen
As the value of the best alternative not chosen
As the difference between the benefits of your choice and the costs of your choice
Inside its production possibilities frontier
Somewhere on and along its production possibilities frontier
Outside of its production possibilities frontier
More of one product with no decrease in the production of any other product
Total output of all goods and services
Market value of final goods and services produced in a nation in a given year
Value added to the economy by intermediate goods and services minus original cost
Production by the rest of the world
Purchase of 100 shares of General Motors stock.
Purchase of a used car.
Purchase of an intermediate good.
None of the above would be included.
GDP = C + I - G + X + M.
GDP = C + I + G + X + M.
GDP = C + I + G + X - M.
GDP = C + I + X - M.
The price level has increased by 3 percent
Real output/production has increased by 3 percent
The increase might have been caused by an increase in the price level or output, but we cannot tell for sure
Government spending increased by 3 percent
Want the good very much
Be both willing and able to pay for it
Think that the good has significant utility
Be aware of the opportunity costs
A change in quantity demanded is shown by a movement along a given demand curve.
The demand curve shifts whenever the quantity demanded changes.
Quantity demanded is the single response to a price change.
The lower the price of a product, other things constant, the higher the quantity demanded.
Negative slope because price and quantity demanded are inversely related
Zero slope because price and quantity demanded are not related
Positive slope because price and quantity demanded are positively related
Infinite slope because price and quantity demanded are not related
Increase because the goods are substitutes
Decrease because the goods are substitutes
Decrease because the goods are complements
Increase because the goods are complements
Rightward shift of the supply curve.
Increase in supply.
Increase in quantity supplied at any given price.
All of the above are true.
Trading in markets can only occur at the equilibrium price and quantity
The behavior of buyers and sellers will automatically guide the market toward the equilibrium price and quantity
It represents a compromise between sellers hoping for low prices and buyers searching for high prices
It is the only price-quantity combination that guarantees that the poorest members of society can purchase the good or service
Higher, its price will be lower, and demand for coffee will go up
Higher, its price will be higher, and demand for coffee will go up
Higher, its price will be higher, and demand for coffee will go down
Higher, its price will be lower, and demand for coffee will go down
Total utility is the satisfaction from the entire consumption of a good.
Utility measures the satisfaction obtained from a good.
Marginal utility is the additional satisfaction from consuming the last unit of a good.
All of the above are true.
Diminishing marginal utility
Increasing opportunity costs
Exceptional marginal utility
Be successful if demand is elastic.
Be successful if demand is inelastic.
Be successful if supply is elastic.
Be successful if supply is inelastic.
None of the above
In which the availability of at least one resource is fixed.
That is long enough to permit changes in the all the firm’s resources.
In which production occurs within one year.
In which production occurs within six months.
Equal to the average output of a worker
The additional utility a consumer gets from the last unit of a product
The additional output from using one more unit of labor
Equal to the total product of labor
Law of demand
Diminishing marginal returns
Returns to scale