Microeconomics Defined Microeconomics is a branch of economics that studies the behavior of individuals and businesses and how decisions are made based on the allocation of limited resources. C scarcity always is a part of human life while shortages usually are temporary. D the study of how people make choices. C how money is used to buy what people want. C the most efficient means for General Motors to produce an automobile.
C about the same amount of capital goods may be produced in the future as are being produced today. C what people would buy if their income was unlimited. B firms will actually end up buying at a particular price during a given time period. C hypothetical constructs used to analyze how people form their tastes and preferences. D tradeoffs, because some areas of the country were damaged when others were not.
Answer: A Diff: 2 Topic: 1. D the effects on a corporation of a strike by the United Auto Workers. C is concerned with unlimited wants. B how to run a business successfully. D satisfying the needs of the economy. This is likely true not just for you, but for all of your neighbors as well.
C both a macroeconomist and a microeconomist. About the Author Karen Schweitzer is a writer and author with 10-plus years of experience. D concerns aggregate production and consumption. Since economic problems confront all of us much of the time, knowledge of economics will enable one to arrive at better decisions, and enable one to evaluate many public policy questions in a systematic manner. Answer: A Diff: 2 Topic: 1.
C prices in particular industries. D none of the above. These prices, in turn, determine the quantity of goods supplied by businesses and the quantity of goods demanded by consumers. B the combinations of goods and services among which consumers are indifferent. C narrowly drawn, and microeconomic analysis often relies on macroeconomic tools. Answer: D Diff: 1 Topic: 1.
Macroeconomics tends to study large economic units and the indirect effects of interest rates, employment, government influence and money inflation. A Macroeconomics is the study of how firms strive to maximize their profits. While enrolled in an undergraduate microeconomics program, you could take courses in economics, microeconomics analysis, statistics and probability, economic decision-making and related topics. C resources are limited and wants are unlimited. C the retail industry only. Microeconomics explores issues such as how families reach decisions about what to buy and how much to save.
D the effects of wage increases on steel manufacturers. C study of how government can most efficiently raise funds by taxation. How consumers maximize utility, and how prices are established in markets for agricultural products d. The length of time it takes to earn this degree varies but normally takes five to six years. B the cost problems at several airlines. D why people want certain goods and services rather than other goods and services.
D employed workers divided by the number of unemployed workers. Answer: D Diff: 1 Topic: 1. Economics tries to explain real-world behavior, especially as it relates to interactions of people confronting scarcity. Microeconomics should not be confused with macroeconomics, which is the study of economy-wide things such as growth, inflation and unemployment. Microeconomics is often contrasted with. C shortages, because supplies were cut off and goods were destroyed. C both a macroeconomist and a microeconomist.
C effects of a gasoline price increase on consumer behavior. Government and private industry rely on microeconomists to analyze and forecast economic trends. A couple of examples of inelastic goods are baby formula and electricity. D All of the above are correct. President's Council of Economic Advisors One determinant of the long-run average unemployment rate is the a. D neither a macroeconomist nor a microeconomist. D the maximum rate of growth of capital and labor in a country 36 Generally, if a nation produces more consumer goods than capital goods A more of all goods may be produced in the future.
D concerns aggregate production and consumption. C effects of a gasoline price increase on consumer behavior. D the effects of macroeconomic subjects such as inflation and unemployment are independent of individual consumers and firms. D the study of how people make choices. When you have completed the practice exam, a green submit button will appear.