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Macroeconomics

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learningChapter 01: The Nature of EconomicsModule results<div style="width: 22em; position: absolute; left: 50%; margin-left: -11em; color: red; background-color: white; border: 1px solid red; padding: 4px; font-family: sans-serif"> Your web browser must have JavaScript enabled in order for this application to display correctly.</div> learning- Return- Alla AwadAlla AwadChapter 01: The Nature of EconomicsSmart Refresh12 minRefresh24 mincourse reportMODULE RESULTSQUESTIONS: 25Expand All Collapse All attempts i1. Macroeconomics is concerned with all of the following except:CORRECT ANSWER:political party affiliationsee more 2. __________ is the study of how households and businesses make choices, how they interact in markets, and how government influences their choices. CORRECT ANSWER:Microeconomicssee more 3. Economics is the study of choice under conditions of:CORRECT ANSWER:scarcitysee more4. In what type of economy does the government decide how economic resources will be allocated?CORRECT ANSWER:a centrally planned economysee more 5. Which of these covers the study of topics such as inflation and unemployment?CORRECT ANSWER:Macroeconomicssee more 6. Which of these is a macroeconomic study?CORRECT ANSWER:The study of how fast prices in general are rising.see more 7. Which of the following is a positive economic statement?CORRECT ANSWER:If minimum wage rates rise, then unemployment will rise.see more 8. Which of the following are not essential components of an economic model?CORRECT ANSWER:Normative statementssee more 9. The hypothesis that people cannot always make completely rational decisions by examining every possible choice but instead use of rules of thumb to guide them is known as;CORRECT ANSWER:bounded rationality. see more 10. deals with the fact that individual choices can be affected by psychological limitations. CORRECT ANSWER:Behavioral economicssee more 11. In economic terms, a(n) is the total amount of some good or service.CORRECT ANSWER:aggregatesee more 12. Understanding economics can help policymakers devise strategies to do all of the following except:CORRECT ANSWER:eliminate climate changesee more 13. If the president of Columbia commented that “we should do something to reduce inflation in Columbia,” this would be an example of:CORRECT ANSWER:a normative statementsee more 14. Which of the following countries has an economy where most of the resource allocation is determined by a central planning authority?CORRECT ANSWER:North Koreasee more 15. Economics:CORRECT ANSWER:is concerned with how people respond to incentivessee more 16. Economic decisions are made at every level in society. When we try to decide which production method to use among several alternatives, which of the following key economic questions are we trying to answer?CORRECT ANSWER:How do we produce the products?see more 17. According to the rationality assumption, people:CORRECT ANSWER:Do not intentionally make decisions that would leave them worse off.see more 18. Economic models often simplify the real world by holding all things equal and changing one variable to determine the impact of the change. The“all things equal” assumption is also known as:CORRECT ANSWER:ceteris paribussee more 19. Which of these is NOT an essential component of an economic model?CORRECT ANSWER:Normative statementssee more 20. When you think of an arrangement or institution that brings buyers andsellers of a good or service together, what are you thinking of?CORRECT ANSWER:A marketsee more 21. Using real world data to test a hypothesis is known as;CORRECT ANSWER:an empirical test.see more 22. One basic underlying principle in economics is that;CORRECT ANSWER:people respond to incentives.see more 23. Macroeconomics focuses on which of the following topics?CORRECT ANSWER:Unemployment, inflation, growth, and tradesee more 24. Macroeconomics can be used to understand all of the topics listed below, except:CORRECT ANSWER:how a consumer decides between the purchase of two different carssee more25. A centrally planned economy is also referred to as a;CORRECT ANSWER:command and control economy.Chapter 2 1. Using information in the previous table, what is country A’s opportunity cost of producing 1 unit of clothing?CORRECT ANSWER:2 units of foodsee more 2. You and your neighbor pick apples and cherries. If you can pick apples at a lower opportunity cost than your neighbor can, which of the following is true?CORRECT ANSWER:You have a comparative advantage in picking apples.see more3. Countries gain from specializing in producing goods in which they havea(n) __________ advantage and trading for goods in which other countries have a(n) __________ advantage.CORRECT ANSWER:Comparative, comparativesee more 4. If a country has a comparative advantage in the production of a good, then that country:CORRECT ANSWER:has a lower opportunity cost in the production of that goodsee more 5. The outward shift of the production possibilities frontier from point A to point B in the above graph would most likely be caused by:CORRECT ANSWER:a technological advance that affects both the production of automobiles and aircraft carrierssee more6. Absolute advantage is the ability of an individual, firm, or country to:CORRECT ANSWER:produce more of a good or service than competitors using the same amount of resourcessee more 7. Refer to the previous graph. Which of the following best represents the situation in which BMW must face a trade-off between producing SUVs and producing hybrids?CORRECT ANSWER:Moving from point B to point Csee more 8. In his 1776 book, “An Inquiry into the Nature and Causes of the Wealth of Nations,” Adam Smith notes that specialization increases productivity. Which of the following was the cause of this phenomenon?CORRECT ANSWER:The division of laborsee more 9. Which of the following is not a possible opportunity cost of attending college?CORRECT ANSWER:The cost of housingsee more 10. The global trend towards large multinational firms is partially driven by __________.CORRECT ANSWER:comparative advantagesee more 11. Ms. Boulware is the best lawyer and the best secretary in town. She has:CORRECT ANSWER:an absolute advantage in both jobssee more12. In the graphs shown, which country has a comparative advantage in the production of shirts?CORRECT ANSWER:Country Bsee more 13. When


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