Question: Macroeconomics approaches the study of economics from the viewpoint of:

Answer: the entire economy.

Question: Microeconomics approaches the study of economics from the viewpoint of:

Answer: consumers and producers

Question: Which of the following questions is not appropriate to the study of macroeconomics?

Answer: How much will Sony charge for the new game system to be introduced later this

year?

Question: Alexandra has determined that studying two hours for her economics quiz will improve

her grade on the quiz from 75 to 100. She also determines that this improvement is

worth $20. To study for her economics quiz, however, she will have to work two fewer

hours at her part-time job. Alexandra should:

Answer: . study for the quiz as long as her hourly wage rate is less than $10

Question: Opportunity cost:

Answer: . is the net benefit forgone by not undertaking the next best alternative

Question: Which of the following is a normative statement?

Answer: Excessive income inequality threatens the well-being of democratic institutions in the

U.S.

Question: Which of the following is the best example of a positive question?

Answer: How many people are unemployed

Question: When your wages rise, the:

Answer: opportunity cost of an hour of leisure increases.

Question: A production possibilities curve shows:

Answer: the various combinations of two goods that can be produced when society employs

all of its resources.

Question: One trading partner is said to have a comparative advantage in the production of a

good if:

Answer: its resources are better suited to the production of that good than are the resources

of the other trading partner