1-Economics involves marginal analysis because:

A. most decisions involve changes from the presentsituation.

B. marginal benefits always exceed marginal costs.

C. marginal costs always exceed marginal benefits.

D. much economic behavior is irrational.

2-In deciding whether to study for an economics quiz or go to amovie, one is confronted by the idea(s) of:

A. scarcity and opportunity costs.

B. complementary economic goals.

C. money and real capital.

D. full production.

3-Macroeconomics approaches the study of economics from theviewpoint of:

A. the entire economy.

B. governmental units.

C. the operation of specific product and resource markets.

D. individual firms.

4-The problems of aggregate inflation and unemployment are:

A. major topics of macroeconomics.

B. major topics of microeconomics.

C. not relevant to the U.S. economy.

D. peculiar to command economies.

5-Which of the following is a microeconomic statement?

A. The real domestic output increased by 2.5 percent lastyear.

B. Unemployment was 6.8 percent of the labor force lastyear.

C. The price of personal computers declined last year.

D. The general price level increased by 4 percent last year.

6-Which of the following is a land resource?

A. a farmer

B. an oil drilling rig

C. a machine for detecting earthquakes.

D. natural gas

7-The unemployment rate that many economists believe representsfull employment is

A. 0 percent.

B. 0-4 percent.

C. 4-6 percent.

D. 6-8 percent.

E. 8-10 percent

8-The difference between GDP andNDP is the

A. rate of inflation.

B. statistical discrepancyencountered in calculating GDP.

C. difference between real versusnominal GDP.

D. depreciation of the economy'scapital stock.

Answer rating: 100% (QA)

1 A most decisions involve changes in the present situation Marginal analysis helps to break down these decisions into smaller pieces so that they are ... View the full answer