For example, microeconomics is used to explain why the price of a good tends to rise as its supply falls, all other things being equal. A By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class. B the percentage of the adult population that has had some high school has been increasing. The tradeoff between inflation and unemployment. B employment in mining, construction, and manufacturing has been increasing. C the fundamental source of abundance. C effects an increase in the price of gasoline has on an individual.
D Why do incentives affect only marginal costs? As a result, a car maker produces a car with many safety features, but it doesn't sell well. Microeconomics is often contrasted with. Macroeconomics, 9e Parkin Chapter 1 What Is Economics? D Corporations should be more socially responsible. B making choices from an unlimited supply of goods and services. B money but not time.
B the fallacy of composition. C not change your participation. B make choices to cope with scarcity. C When the national unemployment rate is 9 percent, the unemployment rate for inner-city youth is often close to 40 percent. C sleep she gave up. B working out at the gym.
D income, pleasure, and sleep she gave up. This behavior a contradicts economic theory because the people didn't do what they said they would do b contradicts economic theory because it is irrational not to purchase safer cars c does not contradict economic theory because economists focus on what people do rather than on what they say d does not contradict economic theory because economic theory only relates to prices and not to features such as safety According to proponents of behavioral economics, because every possible choice cannot be considered, an individual will tend to fall back on methods of making decisions that are simpler than trying to sort through every single possibility, known as a rules of thumb b rational options c irrational choices d normative decisions If psychological limitations and other complications cause people to be unable to examine and think through every possible choice available to them and rely instead on rules of thumb, then these individual exhibit: a unbounded rationality b normative thinking c bounded rationality d positive thinking Assumption are necessary to a make economics a social science b define a set of circumstances where a model is most likely to apply c define the relationship between wants and resources under all circumstances d define the specific cause and effect relationship that is being explained by social science What would lead an economist to conclude that Theory A is superior to Theory B a Theory A predicts real-world events better than does Theory B b the assumption underlying Theory A are more realistic than are the assumptions underlying Theory B c Theory A explains how people think, whereas Theory B only explains what they do d Theory A is based on the assumption that an individual typically cannot determine what is in his or her own best interest, whereas Theory B assumes that each person knows what is in his or her own best interst and acts accordingly. C macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. B microeconomics looks at the economy as a whole. Reason: Microeconomics is a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. You are overseeing the construction of buildings on an island. Refer to the above diagram.
C always forwards the social interest. The machine Jon operates is what type of resource? Answer: A Topic: Study Guide Question, What Goods and Services Are Produced? C is the value of playing basketball and the value of watching television. B additional cost from one more unit of an activity. C What determines the amount a firm will produce. D the skill and knowledge of workers. They describe what is believed about how the world appears. Click it to see your results.
D effects of an increase in government spending on the nation's production. B the Federal Reserve's policies. Refer to the above diagram for athletic shoes. D a share of stock issued by a firm. Effects of farm subsidies on food prices. C the highest-valued alternative given up. D the person must concentrate on the activity's total benefits.
Anna's model is less complicated and less realistic. B the way things are. D the monetary cost but not the time required. The store owner is deciding whether to stay open an extra hour each evening. B land, labor, capital and entrepreneurship. B Comparing inflation rates across countries. In this case, 3M was acting as a n An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded.
The most common uses of microeconomics deal with individuals and firms that trade with one another, but its methods and insights can be applied to nearly every aspect of purposeful activity. More consumer spending now means more spending in the future. D controlling a budget for a household. Maria's model has very realistic assumptions and is quite complex. B only in underdeveloped countries because there are few productive resources in these countries. The basic difference between macroeconomics and microeconomics is: A. B is the value of playing basketball if John prefers that to watching television.