Question

1. Macroeconomies approaches the study of economics from the viewpoint of A) the entire economy B) governmental units. C) the operation of specific product and resource markets D) individual firms 2. Microeconomics is concerned with: the aggregate or total levels of income, employment, and output B) a detailed examination of individual economic units that make up the economic positive economics, but not normative economics. C) system. D) the establishin g of an overall view of the operation of the economic system. 3. Opportunity cost is best defined as: A) the monetary cost of goods and services. B) the cost of economic freedom. Q) the cost of surpluses and shortages in a free market economy. D) the next best alternative given up when a choice is made. 4. Normative economic statements are concerned with A) facts and theories. B) what ought to be. C) what is. D) rational choice involving costs and benefits 5. The four factors of production (economic resources) are: A) B) C) land, labor, capital, and money land, labor, capital, and entrepreneurial ability labor, capital, technology, and entrepreneurial ability D) labor, capital, entrepreneurial ability, and money A trade-off between equity and efficiency may exist because of which of the following reasons? A) 6. B) C) D) allocating resources fairly may cause efficiency any efficient allocation of resources is unfair to low income families efficient production is seldom efficient allocating resources fairly may lead to some inefficiency 7. Marginal decision making means making economic choices based on the margin call of your stock options. a little more or a little less of something. A) B) C) sunk costs. D) comparative advantage. 8. Which of the following methods of encouraging recycling is likely to be most effective? appealing to consumers to "be good citizens" publicizing the benefits of recycling imposing a tax per bag of garbage generated handing out free recycling bins to everyone A) B) C) D)