Macroeconomics: Chapters 1,2&3

What statement would best complete a short definition of economics?

The idea in economics that "there is no such thing as a free lunch" means that

The opportunity cost of building a new stadium is the

From the economic perspective, when business decides to employ more workers, the business decision maker has most likely concluded that the marginal

The combination of economic theories or principles into a simplified representation of reality is referred to as an economic

Which would be studied in macroeconomics?

When we look at the whole economy or its major aggregates, our analysis would be at the level of 

Which is a normative economic statement?

Tools, machinery, or equipment used to produce other goods would be an example of 

An entrepreneur innovates by

When production possibilities curve is written in this chapter, four assumptions are made. Which is one of those assumptions?

What is the economic rationale for the law of increasing opportunity costs

The private ownership of property resources an use of markets and prices to direct and coordinate economic activity are characteristics of

Which is one of the main characteristics of the market system?

The maximization of profit tends to be the driving force in the economic decision making of

Which situation would most likely shift the production possibilities curve for a nation in an outward direction?

How do consumers typically express self-interest?

By seeking the lowest prices for a product

Which is a characteristic of competition as economists see it?

The decide how to use it scarce resources to satisfy economic wants, a market economy primarily relies on

The market system is a method of

When workers specialize in various tasks to produce a commodity, the situation is referred to as

In what way does human specialization contribute to an economy's output?

Which is a prerequisite of specialization?

In the market system, the role of government is best described as

Which would necessarily result, sooner or later, from a decrease in consumer demand for a product?

The demand for resources is

Which is the primary factor determining the share of the total output of the economy received by a household?

If an increase in the demand for a product and a rise in its price cause an increase in the quantity supplied, price is successfully performing its

The advent of personal computers and word processing software that eliminated the market for electric typewriters would be an example of

The chief economic virtue of the competitive market system is that it

In the circular flow diagram, businesses

A schedule that shows the various amounts of product consumers are willing and able to purchase at each price in a series of possible prices during a specified time period is called

the reason for the law of demand can be best explained in terms of

Assume that the price of video game players falls. What will most likely happen to the equilibrium price and quantity of video games, assuming this market is competitive?

What change will decrease the demand for a product?

The income of a consumer decreases and the consumer's demand for a particular good increases. It can be concluded that the good is

The law of supply states that, other things being constant, as price increases

If the quantity supplied of a product is greater than the quantity demanded for a product, then

If the price of a product is below equilibrium price, the result will be

A decrease in supply and demand will

An increase in demand and a decrease in supply will

A maximum price set by the government that is designed to help consumers is a