Macroeconomics Study Questions PDF

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Macroeconomics Study Questions...

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Welcome to Economics. Introduction Study Questions (Answers) 1. Economics is the study of how people, institutions, and society make choices under conditions of scarcity. It is important to study because it provides important knowledge about making everyday decisions. ---2. Microeconomics focuses on individual things within the economy such as households, workers, and businesses. Macroeconomics focuses on more general issues like trade balance and unemployment. 3. A. macroeconomics B. microeconomics C. microeconomics D. macroeconomics E. microeconomics F. macroeconomics 4. Positive: If it rains, the field will get wet. Normative: The field is better when it’s wet 5. The three main goals of macroeconomics are economic growth, low inflation, and low unemployment. 6. Scarcity is when there aren’t enough resources available for what people want. Two reasons for scarcity are limited resources and high demand. 7. Some examples of free goods that aren’t scarce are oxygen, water, and music. 8. Economic resources are the things that are used to produce goods and services, such as, land, labor, entrepreneurship, and capital. Economists classify them by putting them in categories that include land, labor, capital, and entrepreneurial. Resources are also called factors of production because they produce services and products. They’re better inputs but that it’s another word for factors of production. 9. 10. Ho use Goods Goods hol & & ds service service are

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Firm s Factor s&

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Market for goods & services

Market for factors

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producti ons primarily buyers in the goods and services market and they are primarily sellers in the labor market. 11. Firms are primarily sellers in the goods and services market and they are primarily buyers in the goods and services. 12. Some examples of why the division of labor increases an economy’s level of production are that it allows workers to focus on where they have an advantage and it also allows economic agents to take advantage of economies. Division of labor wouldn’t work without trade because then labor has to do everything involved in the process of production for goods and services. 13. The three ways that societies can organize themselves economically are as a market economy, as a command economy, or as both. 14. A market economy will start to make more goods on it’s own while the command economy will continue to only make certain amounts of goods when there are people that need it. 15. I think that most modern countries’ economies are a mix of command and market types because the mix makes it so that the economy is even for everyone....