How does Macroeconomics differ from Microeconomics?

Macro deals with the economy as a whole and micro individuals or firms

What was John Keynes philosophy on government intervention in the economy?

The gov’t has a duty to intervene to ensure fair market exchanges

Which is NOT true about Adam Smith

Lived in the early 20th century

All of the following are benefits of trade EXCEPT:

We can become dependent on another country.

Which is an example of an intended consequence?

When sales increase after an advertising campaign.

Which of the following is FALSE regarding a Voluntary Market Exchange?

One party feels coerced into the exchange.

Which is NOT one of the 3 basic economic questions?

Who owns the means of production?

All of the following are aspects of the definition of economics EXCEPT:

Study of how government involvement affects the economy

What is the marginal benefit of pollution controls?

The improvement in air quality when pollution is reduced by 1 unit.

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Economics intro chapters

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Ch 1-4

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Questions 20

Answers

1
How does Macroeconomics differ from Microeconomics?
There is no difference
Microeconomics is international and macro is 1 country
Macroecon deals with households & businesses & micro the national level
Macro deals with the economy as a whole and micro individuals or firms
2
What is the relationship between changes (improvements) in technology and productivity?
No change in productivity
Increased productivity
Decreased productivity
They are not related.
3
What was John Keynes philosophy on government intervention in the economy?
Hands off
The gov’t should own and run all production.
The gov’t has a duty to intervene to ensure fair market exchanges
The gov’t should dictate what and how much is produced.
4
What does the production function (prod. Possibilities curve) show?
How much goods cost.
Price producers pay for inputs.
The max output given inputs.
Consumer demand.
5
Which is NOT true about Adam Smith
Believed in the “invisible hand” to regulate the market
Coined the term “laissez faire” economics
Lived in the early 20th century
Is known as the “father of economics”
6
All of the following are benefits of trade EXCEPT:
We have access to non-native resources
Variety of goods/services increases
We can be introduced to goods/services we have never seen.
We can become dependent on another country.
7
The shelling machines that Priesters use to shell the pecans are _____________________.
Labor
Capital
Land
Entrepreneurship
8
Which is an example of an intended consequence?
When sales increase after an advertising campaign.
When the gov’t reduces sugar imports causes reduced candy cane production
When bicycle riding decreases after helmets are required.
When a reef is formed from a sunken ship.
9
Which of the following is NOT an economic resource?
Investments
Labor
Capital
Land
10
Which of the following is FALSE regarding a Voluntary Market Exchange?
One party feels coerced into the exchange.
Both parties benefit.
The choices we make in exchanges are based on multiple sources of info.
We have the freedom to buy/sell whatever we choose.
11
Which is NOT one of the 3 basic economic questions?
For whom will things be produced?
How much will be produced?
What will be produced?
Who owns the means of production?
12
All of the following are aspects of the definition of economics EXCEPT:
Allocation of scarce resources to satisfy people’s wants
Study of how government involvement affects the economy
Production & distribution of goods & services
How societies make choices under scarcity
13
Jody’s 10 years of experience as an accountant is classified as _______________.
Land
Labor
Entrepreneurship
Human capital
14
What is the marginal benefit of pollution controls?
The improvement in air quality when pollution is reduced by 1 unit.
Whether or not the air is cleaner.
How much a company must spend to reduce their pollution.
Reducing the cost of health care.
15
What is productivity?
Input / output
How much is produced.
How much is invested in a business.
Output / Input
16
The situation where needs & wants are not satisfied by the available goods.
Low resources
Deficit
Scarcity
Shortage
17
The willingness to take a risk, organize, and oversee the operations of a business is ______________________.
Investing
Entrepreneurship
Capitalism
Bureaucracy
18
Which is an economic assumption?
Neither
Both
People are self interested
People are rational
19
The pecan trees that we see in our area are classified as _____________________.
Labor
Capital
Entrepreneurship
Land
20
What is consumers’ goal when deciding what to purchase?
To maximize their utility.
To not be cheated.
To pay as little as possible.
To buy domestic goods.

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