June P1 Mix

What is the primary focus of economics?

The study of how individuals, businesses, governments, and other organizations make decisions to allocate scarce resources (correct)

The analysis of how businesses and governments make financial decisions

The examination of how societies make decisions about resource allocation

The study of how individuals make decisions to allocate abundant resources

What arises because human wants are limitless, yet resources are limited?

Poverty

Unemployment

Inflation

Scarcity (correct)

What is the fundamental economic problem?

How to increase employment

How to reduce poverty

How to distribute limited resources efficiently (correct)

How to achieve economic growth

What is one of the primary economic questions?

What to produce? Signup and view all the answers

Which branch of economics focuses on the decisions of individuals and firms?

Microeconomics Signup and view all the answers

What is studied in macroeconomics?

The overall functioning of an economy Signup and view all the answers

What is a factor that leads to the economic problem?

Limited resources Signup and view all the answers

What do individuals, governments, and societies need to make decisions about?

Resource allocation and financial capacities Signup and view all the answers

What is the primary role of entrepreneurship in the economy?

Combining other factors to create goods and services Signup and view all the answers

What sector of the economy involves extraction of natural resources?

Primary Sector Signup and view all the answers

What type of goods are consumed immediately or shortly after purchase?

Non-durable Goods Signup and view all the answers

What is the term for the portion of income available for spending or saving after taxes?

Disposable Income Signup and view all the answers

What is a key component of sustainable economic development?

Fair labor practices Signup and view all the answers

What type of measure might a government use to curb environmentally harmful activities?

Regulatory Measure Signup and view all the answers

Which economic participant provides labor and receives income in the circular flow model?

Households Signup and view all the answers

What is the term for the economy's various sectors, including businesses and government?

Private Sector Signup and view all the answers

What is a challenge to achieving sustainable development?

Pollution Signup and view all the answers

What is the primary function of the government in the economy?

Collecting taxes and providing public services Signup and view all the answers

Which phase of the business cycle is characterized by high economic activity and increasing employment?

Prosperity Signup and view all the answers

What is an example of an exogenous reason that can influence the economy?

Natural disasters Signup and view all the answers

What is the term for the total demand for goods and services in the economy?

Aggregate Demand Signup and view all the answers

What tends to happen to inflation during the expansion phase of the business cycle?

It rises Signup and view all the answers

Who are disproportionately affected by business cycles?

Economically vulnerable populations Signup and view all the answers

What is the purpose of understanding business cycles?

To anticipate economic changes and implement measures to mitigate the adverse effects Signup and view all the answers

What happens to employment during the boom phase of the business cycle?

Job creation increases Signup and view all the answers

What is an example of an endogenous reason that can influence the economy?

Fluctuations in investment Signup and view all the answers

What is the main focus of Monetary Economics?

The role of money in the economy Signup and view all the answers

Which of the following approaches involves developing hypotheses based on existing theories?

Deductive reasoning Signup and view all the answers

What is the main purpose of economic models?

To understand and predict the interactions and outcomes of economic actions Signup and view all the answers

What is the main difference between Positive and Normative Economics?

One is based on objective analysis, while the other is based on subjective analysis Signup and view all the answers

What is the main challenge in economic research?

All of the above Signup and view all the answers

What is the fundamental economic problem?

The problem of scarcity Signup and view all the answers

What is the difference between absolute and relative scarcity?

Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are sufficient but inaccessible Signup and view all the answers

What is an opportunity cost?

The foregone benefit of the next best alternative Signup and view all the answers

Which of the following is an example of a free good?

All of the above Signup and view all the answers

What is the main difference between economic goods and free goods?

Economic goods require scarce resources to produce, while free goods are naturally available without cost Signup and view all the answers

What is the primary function of financial institutions?

To facilitate savings and provide loans Signup and view all the answers

What is the Real Flow in the economy?

The movement of goods and services Signup and view all the answers

What is the primary purpose of the Goods Market?

To exchange goods and services Signup and view all the answers

What is the formula for calculating GDP using the Expenditure Approach?

GDP = C + I + G + (X - M) Signup and view all the answers

What is Gross National Income (GNI)?

The total income earned by a country's nationals, including production inside and outside the country Signup and view all the answers

What is a limitation of GDP as a measure of economic activity?

It does not account for the distribution of income among the population Signup and view all the answers

What is the purpose of calculating per capita income?

To understand the economic well-being of the average citizen Signup and view all the answers

What is a characteristic of business cycles?

They are characterized by alternating periods of expansion and contraction Signup and view all the answers

What is the purpose of economic indicators in understanding business cycles?

To analyze changes in the business cycle Signup and view all the answers

What is a coincident indicator in the context of business cycles?

A indicator that moves in tandem with the economy Signup and view all the answers

What is the primary challenge in economics?

Scarcity Signup and view all the answers

Which of the following is a primary economic question?

What to produce? Signup and view all the answers

What is the main focus of macroeconomics?

The study of the overall functioning of an economy Signup and view all the answers

What is the main difference between microeconomics and macroeconomics?

Microeconomics studies individuals and firms, while macroeconomics studies the overall economy Signup and view all the answers

Why do individuals, governments, and societies need to make decisions about resource allocation?

Because resources are finite Signup and view all the answers

What is a key aspect of the economic problem?

Limited resources and infinite wants Signup and view all the answers

Which of the following is not a primary economic question?

Why are resources limited? Signup and view all the answers

What is the main focus of economic analysis?

How to make decisions about finite resources Signup and view all the answers

What is the primary characteristic of the prosperity phase of a business cycle?

High economic activity Signup and view all the answers

Which of the following is an example of an endogenous reason that can influence the economy?

Fluctuations in investment Signup and view all the answers

What is the impact of business cycles on economically vulnerable populations?

They are disproportionately affected by economic downturns Signup and view all the answers

What is the term for the total supply of goods and services available in the economy?

Aggregate Supply Signup and view all the answers

What happens to employment during the recession phase of the business cycle?

Job creation decreases Signup and view all the answers

What is the primary role of government and social services during economic downturns?

To provide support to economically vulnerable populations Signup and view all the answers

What is the impact of business cycles on economic growth?

Expansion phases lead to economic growth, while contraction phases lead to declines Signup and view all the answers

What is the purpose of understanding business cycles?

To anticipate economic changes and implement measures to mitigate the adverse effects on the population Signup and view all the answers

What is the primary function of entrepreneurship in the economy?

To combine the factors of production to create goods and services Signup and view all the answers

What sector of the economy provides services rather than goods?

Tertiary Sector Signup and view all the answers

What is the term for the economy's various sectors, including businesses and government?

Economic Sectors Signup and view all the answers

What type of goods are long-lasting and can be used multiple times?

Durable Goods Signup and view all the answers

What is the term for the portion of income available for spending or saving after taxes?

Disposable Income Signup and view all the answers

Which economic participant hires labor and produces goods and services?

Businesses Signup and view all the answers

What is a key component of sustainable economic development?

All of the above Signup and view all the answers

What type of measure might a government use to curb environmentally harmful activities?

Regulatory measures Signup and view all the answers

What is the term for the total value of goods and services produced within an economy?

Gross Domestic Product (GDP) Signup and view all the answers

What is the primary function of government in the economy?

To collect taxes and provide public services and infrastructure Signup and view all the answers

What is the main focus of Developmental Economics?

The policies that promote economic development in less developed countries Signup and view all the answers

What is the purpose of economic models?

To test hypotheses and make economic predictions Signup and view all the answers

What is the difference between deductive and inductive reasoning in economics?

Deductive reasoning involves developing hypotheses based on existing theories, while inductive reasoning involves observing data to develop new theories Signup and view all the answers

What is the primary challenge in economic research?

The difficulty of conducting controlled experiments Signup and view all the answers

What is the term for the foregone benefit of the next best alternative when a choice is made?

Opportunity cost Signup and view all the answers

What is the main difference between absolute and relative scarcity?

Absolute scarcity occurs when resources are insufficient, while relative scarcity occurs when resources are sufficient but inaccessible Signup and view all the answers

What is the primary function of International Economics?

To focus on international trade and finance Signup and view all the answers

What is the main purpose of the scientific method in economics?

To develop hypotheses and test them against empirical data Signup and view all the answers

What is the primary difference between Positive and Normative Economics?

Positive economics focuses on describing and predicting economic phenomena, while normative economics involves value judgments and subjective perspectives Signup and view all the answers

What is the primary focus of Environmental Economics?

The economic issues with environmental implications Signup and view all the answers

What is the main purpose of the Factor Market?

To trade factors of production such as land, labor, and capital Signup and view all the answers

What is the focus of the Goods Market?

To facilitate the movement of goods and services Signup and view all the answers

What is the monetary flow in the economy?

The movement of money in exchange for goods, services, and labor Signup and view all the answers

What is the main purpose of calculating GDP?

To measure the total market value of all final goods and services produced Signup and view all the answers

What is the Income Approach to calculating GDP?

The total income earned from producing goods and services Signup and view all the answers

What is a limitation of GNI?

It does not account for the distribution of income among the population Signup and view all the answers

What is a characteristic of business cycles?

Alternating periods of expansion and contraction in economic activity Signup and view all the answers

What is the purpose of leading indicators in understanding business cycles?

To signal future economic changes before they occur Signup and view all the answers

What is the term for the total income earned by a country's nationals, including production inside and outside the country?

GNI Signup and view all the answers

What is the purpose of per capita income calculation?

To understand the economic well-being of the average citizen Signup and view all the answers

Why do individuals, governments, and societies need to make decisions about resource allocation?

Because human wants are limitless, yet resources are limited Signup and view all the answers

What is the primary focus of the economic question 'What to produce?'

Deciding which goods and services should be produced given limited resources Signup and view all the answers

Which branch of economics addresses broad issues like unemployment and economic growth?

Macroeconomics Signup and view all the answers

What is the main reason why economics is considered a social science?

Because it studies how individuals, businesses, governments, and other organizations make decisions Signup and view all the answers

What is the underlying assumption behind the concept of scarcity?

That human wants are unlimited and resources are limited Signup and view all the answers

What is the primary economic question that involves deciding who will receive the products and services created?

For whom to produce? Signup and view all the answers

Why is it necessary to make decisions about resource allocation in an economy?

Because resources are limited and wants are unlimited Signup and view all the answers

What branch of economics focuses on the decisions of individuals and firms?

Microeconomics Signup and view all the answers

What is the primary focus of Developmental Economics?

Policies that promote economic development in less developed countries Signup and view all the answers

Which of the following approaches involves observing data to develop new theories?

Inductive reasoning Signup and view all the answers

What is the main purpose of economic models?

To test hypotheses and make economic predictions Signup and view all the answers

What is the main difference between Positive and Normative Economics?

Objective vs. subjective analysis Signup and view all the answers

What type of scarcity occurs when resources are sufficient to satisfy needs but are inaccessible to most due to economic constraints?

Relative scarcity Signup and view all the answers

What is the opportunity cost of a choice?

The benefit of the next best alternative Signup and view all the answers

Which of the following is an example of a free good?

Sunlight Signup and view all the answers

What is the main challenge in economic research?

Dealing with human behaviors that are diverse and difficult to predict Signup and view all the answers

What is the main focus of International Economics?

International trade and finance Signup and view all the answers

What is the main focus of Labour Economics?

The supply and demand for labour Signup and view all the answers

What is the primary role of the public sector in the economy?

To control government enterprises and services Signup and view all the answers

What is the main characteristic of durable goods?

They are long-lasting Signup and view all the answers

What is the main difference between the primary and secondary sectors?

The primary sector involves extraction, while the secondary sector involves manufacturing Signup and view all the answers

What is the main purpose of regulatory measures in achieving sustainable development?

To curb environmentally harmful activities Signup and view all the answers

What is the main characteristic of the informal sector?

It is not included in official economic statistics Signup and view all the answers

What is the main role of households in the circular flow model?

To provide labor and receive income Signup and view all the answers

What is the main importance of sustainable development?

It ensures economic growth without depleting natural resources or harming human and environmental health Signup and view all the answers

What is the main difference between capital and entrepreneurship?

Capital involves the use of natural resources, while entrepreneurship involves the combination of other factors of production Signup and view all the answers

What is the main purpose of exchange rates?

To facilitate international trade Signup and view all the answers

What is the main characteristic of the tertiary sector?

It provides services rather than goods Signup and view all the answers

What is the primary characteristic of the prosperity phase of a business cycle?

High economic activity, increasing employment, wages, and standards of living Signup and view all the answers

Which of the following is an example of an endogenous reason that can influence the economy?

Fluctuations in investment Signup and view all the answers

What is the impact of business cycles on economically vulnerable populations?

They are more affected by economic downturns due to reduced income and higher unemployment rates Signup and view all the answers

What is the purpose of understanding business cycles in economic planning and policymaking?

To anticipate economic changes and implement measures to mitigate the adverse effects on the population Signup and view all the answers

What is the term for the total supply of goods and services available in the economy?

Aggregate Supply Signup and view all the answers

What happens to price levels during the expansion phase of the business cycle?

They tend to rise Signup and view all the answers

What is the main difference between the prosperity and boom phases of the business cycle?

The prosperity phase has high economic activity, while the boom phase has peak economic performance Signup and view all the answers

What is the impact of business cycles on employment?

Job creation increases during booms and decreases during recessions Signup and view all the answers

What is the primary function of the Foreign Sector in the economy?

Engaging in trade, affecting imports and exports Signup and view all the answers

What is the main difference between the Goods Market and the Factor Market?

The Goods Market is for goods and services, while the Factor Market is for factors of production Signup and view all the answers

Which approach to calculating GDP is based on the total income earned from producing goods and services?

Income Approach Signup and view all the answers

What is the main difference between GDP and GNI?

GDP focuses on production within the country, while GNI accounts for all income by a country's nationals Signup and view all the answers

What is the purpose of per capita income calculation?

To understand the economic well-being of the average citizen Signup and view all the answers

What are the three main approaches to calculate GDP?

Product Approach, Expenditure Approach, and Income Approach Signup and view all the answers

What is the primary characteristic of business cycles?

They are alternating periods of expansion and contraction in economic activity Signup and view all the answers

What is the purpose of economic indicators in understanding business cycles?

To analyze changes in the business cycle and understand its phases Signup and view all the answers

What is a coincident indicator in the context of business cycles?

An indicator that moves in tandem with the economy Signup and view all the answers

What is a limitation of GDP as a measure of economic activity?

It does not account for the distribution of income among the population Signup and view all the answers

What is the underlying assumption about human wants and resources that drives the economic problem?

Human wants are infinite, but resources are limited. Signup and view all the answers

Which economic branch would study the impact of a new technology on the production of a specific good?

Microeconomics Signup and view all the answers

What is the primary concern of individuals, governments, and societies when making economic decisions?

Allocating limited resources efficiently Signup and view all the answers

Which of the following is not a primary economic question?

How to educate the workforce Signup and view all the answers

What is the primary difference between macroeconomics and microeconomics?

Macroeconomics focuses on the overall economy, while microeconomics focuses on individual markets Signup and view all the answers

Which of the following best represents the core challenge in economics?

Scarcity Signup and view all the answers

What is the primary function of economic analysis in the context of resource allocation?

To allocate resources efficiently to satisfy competing wants Signup and view all the answers

Which of the following is a consequence of the fundamental economic problem?

Opportunity costs Signup and view all the answers

What is the primary factor that determines the allocation of resources in a mixed economy?

Market forces Signup and view all the answers

Which of the following sectors is most closely associated with the provision of public goods and services?

Public sector Signup and view all the answers

What is the primary goal of sustainable economic development?

Conducting economic growth without depleting natural resources or harming human and environmental health Signup and view all the answers

Which of the following is an example of a semi-durable good?

Clothing Signup and view all the answers

What is the primary function of entrepreneurship in the economy?

Combining the factors of production to create goods and services Signup and view all the answers

Which of the following is a characteristic of the informal sector?

Businesses are unregistered and do not pay taxes Signup and view all the answers

What is the primary role of the government in the circular flow model?

Collecting taxes and providing public services and infrastructure Signup and view all the answers

Which of the following is an example of a supportive measure for sustainable development?

Subsidy for environmentally friendly practices Signup and view all the answers

What is the primary difference between the primary and secondary sectors of the economy?

Primary sector involves extraction of natural resources, while secondary sector involves manufacturing Signup and view all the answers

Which of the following is a key component of sustainable economic development?

All of the above Signup and view all the answers

Which branch of economics studies the policies that promote economic development in less developed countries?

Developmental Economics Signup and view all the answers

What is the primary purpose of economic models?

To test hypotheses and make economic predictions Signup and view all the answers

Which approach involves observing data to develop new theories?

Inductive reasoning Signup and view all the answers

What is the primary challenge in economic research?

Maintaining all variables constant except one Signup and view all the answers

What is the difference between absolute and relative scarcity?

Absolute scarcity occurs when resources are insufficient, while relative scarcity exists when resources are sufficient but inaccessible Signup and view all the answers

What is the opportunity cost of choosing to plant wheat instead of corn?

The foregone benefit of planting corn Signup and view all the answers

Which of the following is an example of a free good?

Sunlight Signup and view all the answers

What is the primary focus of International Economics?

International trade and finance Signup and view all the answers

Which branch of economics examines the economic activities of government and its role in the economy?

Public Sector Economics Signup and view all the answers

What is the primary difference between Positive and Normative Economics?

Positive Economics focuses on describing and predicting, while Normative Economics involves value judgments Signup and view all the answers

What is the primary characteristic of the prosperity phase of a business cycle?

High economic activity and increasing employment Signup and view all the answers

Which of the following is an example of an exogenous reason that influences the economy?

Foreign trade dynamics Signup and view all the answers

What is the impact of business cycles on economically vulnerable populations?

They suffer disproportionately from economic downturns Signup and view all the answers

What is the relationship between aggregate demand and supply during the expansion phase of a business cycle?

Aggregate demand is greater than aggregate supply Signup and view all the answers

What is the primary purpose of understanding business cycles?

To mitigate the adverse effects of economic downturns on vulnerable populations Signup and view all the answers

What is the characteristic of the recovery phase of a business cycle?

Gradual improvement in economic conditions Signup and view all the answers

What is the impact of business cycles on employment?

Job creation increases during booms and decreases during recessions Signup and view all the answers

What is the relationship between inflation and business cycles?

Inflation tends to rise during expansion and stabilize or fall during contraction Signup and view all the answers

What is the primary function of the Foreign Sector in the economy?

To engage in trade, affecting imports and exports Signup and view all the answers

Which of the following flows is a movement of goods and services?

Real Flow Signup and view all the answers

What is the primary purpose of the Factor Market?

To trade factors of production such as land, labor, and capital Signup and view all the answers

What is the formula for calculating GDP using the Expenditure Approach?

GDP = C + I + G + (X - M) Signup and view all the answers

What is a limitation of GDP as a measure of economic activity?

It does not account for the distribution of income among the population Signup and view all the answers

What is the primary purpose of calculating per capita income?

To understand the economic well-being of the average citizen Signup and view all the answers

What is a characteristic of business cycles?

They are characterized by alternating periods of expansion and contraction Signup and view all the answers

What is the primary purpose of economic indicators in understanding business cycles?

To analyze changes in the business cycle Signup and view all the answers

What is a coincident indicator in the context of business cycles?

A movement in tandem with the economy Signup and view all the answers

What is the primary difference between GDP and GNI?

GDP focuses on production within the country, while GNI accounts for all income by the country's nationals Signup and view all the answers

What is the underlying assumption that drives the economic problem of scarcity?

Human wants are infinite, but resources are finite Signup and view all the answers

Which of the following is NOT a primary economic question?

When to consume? Signup and view all the answers

What is the primary distinction between microeconomics and macroeconomics?

Microeconomics studies firms, while macroeconomics studies the overall economy Signup and view all the answers

What is the term for the process of allocating limited resources to meet unlimited human wants?

Resource allocation Signup and view all the answers

Which branch of economics is concerned with issues such as unemployment, inflation, and economic growth?

Macroeconomics Signup and view all the answers

What is the primary challenge in addressing the economic problem of scarcity?

Making decisions about resource allocation Signup and view all the answers

What is the term for the study of how individuals, businesses, governments, and other organizations make decisions to allocate scarce resources?

Economics Signup and view all the answers

What is the primary role of economics in addressing the problem of scarcity?

To allocate limited resources efficiently Signup and view all the answers

What is the primary goal of economic models?

To predict and understand economic interactions and outcomes Signup and view all the answers

Which approach involves developing hypotheses based on existing theories and testing them against empirical data?

Deductive reasoning Signup and view all the answers

What is the primary challenge in economic research?

Maintaining controlled experiments Signup and view all the answers

What is the main difference between absolute and relative scarcity?

One is a physical limitation, while the other is an economic constraint Signup and view all the answers

What is the primary focus of Developmental Economics?

Policies that promote economic development in less developed countries Signup and view all the answers

What is the primary function of the scientific method in economics?

To test hypotheses and draw conclusions based on evidence Signup and view all the answers

What is the primary difference between Positive and Normative Economics?

One focuses on objective analysis, while the other involves value judgments Signup and view all the answers

What is the main feature of economic goods?

They require scarce resources to produce Signup and view all the answers

What is the primary role of opportunity cost in economics?

To reflect the trade-offs involved in making economic choices Signup and view all the answers

Which branch of economics focuses on the economic activities of government and its role in the economy?

Public Sector Economics Signup and view all the answers

What is the primary reason why business cycles have a significant impact on economically vulnerable populations?

They have a lower ability to absorb economic shocks. Signup and view all the answers

Which of the following is a characteristic of the boom phase of the business cycle?

Peak economic performance and a potential downturn. Signup and view all the answers

What is the primary role of understanding business cycles in economic planning and policymaking?

To anticipate economic changes and implement measures to mitigate the adverse effects. Signup and view all the answers

What is the primary difference between exogenous and endogenous reasons that influence the economy?

Exogenous reasons are external, while endogenous reasons are internal. Signup and view all the answers

What is the primary impact of business cycles on price levels?

Inflation tends to increase during expansion and decrease during contractions. Signup and view all the answers

What is the primary role of government and social services in supporting economically vulnerable populations during economic downturns?

To provide financial assistance and support. Signup and view all the answers

What is the primary impact of business cycles on employment?

Job creation increases during booms and decreases during recessions. Signup and view all the answers

What is the primary characteristic of the recovery phase of the business cycle?

Gradual improvement in economic conditions. Signup and view all the answers

What is the primary function of the Foreign Sector in a country's economy?

To engage in trade, affecting imports and exports Signup and view all the answers

Which of the following represents the continuous flow of resources and financial assets in the economy?

Production, Income, and Spending Signup and view all the answers

What is the primary role of the public sector in the economy?

To invest in public goods and services that benefit society as a whole Signup and view all the answers

Which of the following is an example of a durable good?

Appliances Signup and view all the answers

What is the primary limitation of using GDP as a measure of economic activity?

All of the above Signup and view all the answers

Which of the following indicators would move in the opposite direction of the economy during a recession?

Counter Cyclical Indicator Signup and view all the answers

What is the main difference between the primary and secondary sectors of the economy?

The primary sector involves extraction of natural resources, while the secondary sector involves manufacturing and processing Signup and view all the answers

What is the primary purpose of calculating per capita income?

To understand the economic well-being of the average citizen Signup and view all the answers

What is the primary purpose of exchange rates in international trade?

To facilitate international trade by determining how much of one currency can be exchanged for another Signup and view all the answers

What is the primary goal of sustainable development?

To achieve economic growth without depleting natural resources or harming human and environmental health Signup and view all the answers

Which of the following is a characteristic of business cycles?

They are characterized by alternating periods of expansion and contraction Signup and view all the answers

What is the primary purpose of economic indicators in understanding business cycles?

To track changes in the economy and predict future changes Signup and view all the answers

What is the main function of entrepreneurship in the economy?

To combine the factors of production to create goods and services Signup and view all the answers

What is the formula for calculating GDP using the Expenditure Approach?

GDP = C + I + G + (X - M) Signup and view all the answers

What is the primary function of the informal sector in the economy?

To provide services that are not included in official economic statistics Signup and view all the answers

What is the primary difference between GDP and GNI?

GDP focuses on production within the country, while GNI focuses on income earned by nationals Signup and view all the answers

What is the main difference between households and businesses in the circular flow model?

Households provide labor, while businesses produce goods and services Signup and view all the answers

What is the primary function of the Goods Market in a country's economy?

To exchange goods and services Signup and view all the answers

What is the primary purpose of regulatory measures in achieving sustainable development?

To curb environmentally harmful activities Signup and view all the answers

What is the primary function of the government in the circular flow model?

To collect taxes and provide public goods and services Signup and view all the answers

June P1 Mix

Questions and Answers

What is the primary focus of economics?

What arises because human wants are limitless, yet resources are limited?

What is the fundamental economic problem?

What is one of the primary economic questions?

Which branch of economics focuses on the decisions of individuals and firms?

What is studied in macroeconomics?

What is a factor that leads to the economic problem?

What do individuals, governments, and societies need to make decisions about?

What is the primary role of entrepreneurship in the economy?

What sector of the economy involves extraction of natural resources?

What type of goods are consumed immediately or shortly after purchase?

What is the term for the portion of income available for spending or saving after taxes?

What is a key component of sustainable economic development?

What type of measure might a government use to curb environmentally harmful activities?

Which economic participant provides labor and receives income in the circular flow model?

What is the term for the economy's various sectors, including businesses and government?

What is a challenge to achieving sustainable development?

What is the primary function of the government in the economy?

Which phase of the business cycle is characterized by high economic activity and increasing employment?

What is an example of an exogenous reason that can influence the economy?

What is the term for the total demand for goods and services in the economy?

What tends to happen to inflation during the expansion phase of the business cycle?

Who are disproportionately affected by business cycles?

What is the purpose of understanding business cycles?

What happens to employment during the boom phase of the business cycle?

What is an example of an endogenous reason that can influence the economy?

What is the main focus of Monetary Economics?

Which of the following approaches involves developing hypotheses based on existing theories?

What is the main purpose of economic models?

What is the main difference between Positive and Normative Economics?

What is the main challenge in economic research?

What is the fundamental economic problem?

What is the difference between absolute and relative scarcity?

What is an opportunity cost?

Which of the following is an example of a free good?

What is the main difference between economic goods and free goods?

What is the primary function of financial institutions?

What is the Real Flow in the economy?

What is the primary purpose of the Goods Market?

What is the formula for calculating GDP using the Expenditure Approach?

What is Gross National Income (GNI)?

What is a limitation of GDP as a measure of economic activity?

What is the purpose of calculating per capita income?

What is a characteristic of business cycles?

What is the purpose of economic indicators in understanding business cycles?

What is a coincident indicator in the context of business cycles?

What is the primary challenge in economics?

Which of the following is a primary economic question?

What is the main focus of macroeconomics?

What is the main difference between microeconomics and macroeconomics?

Why do individuals, governments, and societies need to make decisions about resource allocation?

What is a key aspect of the economic problem?

Which of the following is not a primary economic question?

What is the main focus of economic analysis?

What is the primary characteristic of the prosperity phase of a business cycle?

Which of the following is an example of an endogenous reason that can influence the economy?

What is the impact of business cycles on economically vulnerable populations?

What is the term for the total supply of goods and services available in the economy?

What happens to employment during the recession phase of the business cycle?

What is the primary role of government and social services during economic downturns?

What is the impact of business cycles on economic growth?

What is the purpose of understanding business cycles?

What is the primary function of entrepreneurship in the economy?

What sector of the economy provides services rather than goods?

What is the term for the economy's various sectors, including businesses and government?

What type of goods are long-lasting and can be used multiple times?

What is the term for the portion of income available for spending or saving after taxes?

Which economic participant hires labor and produces goods and services?

What is a key component of sustainable economic development?

What type of measure might a government use to curb environmentally harmful activities?

What is the term for the total value of goods and services produced within an economy?

What is the primary function of government in the economy?

What is the main focus of Developmental Economics?

What is the purpose of economic models?

What is the difference between deductive and inductive reasoning in economics?

What is the primary challenge in economic research?

What is the term for the foregone benefit of the next best alternative when a choice is made?

What is the main difference between absolute and relative scarcity?