Macroeconomics Exam 1

Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact:

In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of:

Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates:

The Latin term "ceteris paribus" means:

Suppose an economist says that "other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that

Which of the following is associated with macroeconomics?

Which of the following statements pertains to macroeconomics?

Macroeconomics can best be described as the:

Microeconomics:

Which of the following is a microeconomic statement?

Which of the following statements is true?

A normative statement is one that:

A positive statement is one that is:

Ben says that "an increase in the tax on beer will raise its price." Holly argues that "taxes should be increased on beer because college students drink too much." We can conclude that:

Brinley says that "gas prices are rising because there aren't enough oil refineries." Katie argues that "gas prices are rising because of the growing demand for gasoline from China and India." We can conclude that:

The alternative combinations of two goods that a consumer can purchase with a specific money income is shown by:

An increase in money income:

Which of the following is a distinguishing feature of a command system?

Which of the following is a distinguishing feature of laissez-faire capitalism?

Examples of command economies are:

The term "laissez-faire" suggests that:

Command systems are also known as:

The regulatory mechanism of the market system is:

Specialization in production is important primarily because it:

Barter:

Five fundamental questions

If competitive industry Y is incurring substantial losses, output will:

The economic function of profits and losses is to:

If a competitive industry is neither expanding nor contracting, we would expect:

The competitive market system:

The most efficient combination of resources in producing a given output is the combination that:

The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially:

The market system's answer to the fundamental question "Who will get the goods and services?" is essentially:

"Consumer sovereignty" refers to the:

Which of the following best describes the invisible-hand concept?

The invisible hand promotes society's interests because: