01 Feb Most real-world choices

KNOWLEDGE CHECK 1

Question 1

If macroeconomics looks at the economy as a whole, it focuses on which of the following?

Question 2

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

Question 3

What is the basic difference between macroeconomics and microeconomics?

Question 4

What is the basic difference between macroeconomics and microeconomics?

Question 5

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

Question 6

Attending college is a case where the ________________ exceeds the monetary cost.

Question 7

Most real-world choices aren’t about getting all of one thing or another; instead, most choices involve _________________, which includes comparing the benefits and costs of choosing a little more or a little less of a good.

Question 8

The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.

Question 9

Also called the opportunity set—a diagram which shows what choices are possible—which of the following is the model that economists use to illustrate the process of individual choice in a situation of scarcity?

Question 10

Scarcity implies that: