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Unit 1 Macro Review Flashcards | StudBud
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Unit 1 Macro Review
Unit 1 Macro Review
17 terms
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#Scarcity #PPC #Supply/Demand
Flashcards
17 cards
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Practice quiz
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Questions
17
Answers
1
If demand decreases, what happens to price?
Decreases
Increases
2
If there is a supply shock to wheat, how will the price and quantity sold of wheat change?
Price Decrease, Q.S. Decrease
Price Decrease, Q.S. Increase
Price Increase, Q.S. Decrease
Price Increase, Q.S. Increase
3
If supply increases, what happens to price?
Increases
Decreases
4
What is the key issue that economics addresses?
Reduction of budget deficit
Promotion of privatization
Reduction of unemployment
Use of scarce resources
5
If both Demand and Supply increase, what happens to equilibrium price and quantity?
Price Increases, Quantity Is Indeterminate
Price Is Indeterminate, Quantity Increases
Price Increases, Quantity Increases
Price Decreases, Quantity Increases
6
A country’s infrastructure is its...
internal, as opposed to external, debt
natural resources
private financial institutions
public capital goods such as highways
7
If supply decreases, what happens to price?
Increases
Decreases
8
If the economy of a country is at a point inside its PPC, then...
It lacks the resources to increase production.
It can increase the production of both goods.
It is using all available resources efficiently.
It does not have the technology to reach the curve.
9
Current = PPC1, which indicates a recession?
Movement from point Y to point Z
Shift from PPC1 to PPC0
Movement from point Z to point X
Movement from point Y to point X
10
If price increases, the quantity demanded...
Decreases
Increases
11
Who supplies the factors of production in the Circular Flow Diagram?
Financial sector
The government
The household sector
The business sector
12
If price decreases, the quantity supplied...
Increases
Decreases
13
All of the following can shift the PPC
EXCEPT
Availability or Quality of Resources.
Changes in technology.
Trade
Investment in Consumer Goods
14
When each unit of good A produced leads to increasing amount of loss of good B, PPC is...
horizontal
upward sloping
a straight line
bowed outward
15
Any point outside the PPC is
currently unattainable with given technology and resources.
associated with inefficient use of some resources
allocatively efficient but technologically inefficient
associated with constant opportunity costs
16
The PPC shows all of the following
EXCEPT
Price Level
Efficiency
Scarcity
Opportunity Cost
17
If demand increases, what happens to price?
Increases
Decreases
