Microeconomics Chapter 1 Flashcards

Macroeconomic topics do not usually include:

Which of the following best describes a fiscal policy tool?

Regardless of whether you are looking through the microeconomics microscope or the macroeconomics telescope, the fundamental subject material of the interconnected __________ doesn't change.

Which of the following statements most likely lies within the realm of macroeconomics?

Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.

Which of the following best denotes the reason for the existence of substantial black markets?

In countries like _____________ the command economy predominates.

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.

Macroeconomics primarily examines:

Macroeconomics is concerned with the expansion and contraction of the overall economy.

Which of the following statements most likely lies within the realm of microeconomics?

The circular flow diagram of economic activity is a model of the:

Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?

In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being:

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

The basic difference between macroeconomics and microeconomics is that microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets).

Which of the following best describes a monetary policy tool?

The basic difference between macroeconomics and microeconomics is that microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.

A term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines.

In the ____________, households work and receive payment from firms.

In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made.

In the ______________, households receive goods and services and pay firms for them.

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

Specialization can lead to an increase in overall production.

In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.

Which of the following is generally accepted as a valid criticism of the production of useful goods and services?

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

Which of the following lies primarily within the realm of macroeconomics?

Which of the following is most likely a topic of discussion in macroeconomics?