Exam 1: Welcome to Economics

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

Macroeconomics primarily examines:

Macroeconomics:

Specialization:

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

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

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

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

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

The formal study of economics began when Adam Smith 1723-1790) published his famous book The Wealth of Nations in 1776. In the first chapter of The Wealth of Nations, Smith introduces the idea of the division of labor. Define "division of labor" and illustrate with an example.

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

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

In countries like _____________ the command economy predominates.

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

The basic difference between macroeconomics and microeconomics is:

The basic difference between macroeconomics and microeconomics is that:

Which of the following best characterizes the circular flow of income?

When nations desire a healthy macroeconomy, they typically focus on several goals:. Three are:

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

_____________ - 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.