16 Questions
What is the main focus of macroeconomics?
Determining a nation's long-run economic growth
What does microeconomics study?
How prices are set within markets
What are some of the issues that macroeconomists address?
What causes prices to rise
What is the study of the large aggregates of the economy or the economy as a whole called?
Macroeconomics
Which area of study in economics deals with the interaction of households and firms in specific markets?
Microeconomics
What does microeconomics focus on in terms of decision-making?
Quantities of a particular product people will consume
Which of the following are topics related to macroeconomics?
Inflation rates
Which of the following are topics related to microeconomics?
Wage levels in agriculture
What is the basic reason for goods being scarce?
High demand and low supply
What does scarcity force individuals and societies to do?
Choose among available alternatives
What does every society need to do in relation to scarce resources?
Ration the scarce resources among competing uses
What is opportunity cost?
The highest-valued activity sacrificed in making a choice
What does the production possibilities curve show?
Combinations of goods that can be produced when resources are fully and efficiently employed
What does the production possibilities curve represent?
A snapshot of an economy's available resources at a particular time
What does scarcity force individuals to do in relation to alternative uses of resources?
Sacrifice some alternative uses to prioritize others
What does opportunity cost measure?
The benefit given up by choosing one alternative over another
Explore the fundamentals of economics including the economic problem, scarcity, choice, circular flow, and production possibilities curve. Learn about the concepts of macroeconomics and its focus on the economy as a whole, long-run economic growth, and business cycles.
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