Name: benirDate:9 26.2ol& 1. The study of a single firm and how it determines pr

Question

Name: benirDate:9 26.2ol& 1. The study of a single firm and how it determines prices would fall under: acroeconomics ) economic growth. D) all of the above. 2. The primary emphasis in macroeconomics is on: how firms set prices. ) the national economy. C) marginal analysis. D) bits and pieces of the economy 3. The basic concern of economics is: A) to keep business firms from losing money to prove that capitalism is better than socialism. C) to study the choices people make D) to use unlimited resources to produce goods and services to satisfy limited wants. 4. Scarcity in economics means: not having sufficient resources to produce all the goods and services we want. B) the wants of people are limited. C) there must be poor people in rich countries. D) economists are clearly not doing their jobs. 5. We have to make choices because: A) we have unlimited income. B) resources are scarce choices involve a trade-off. D) of both b and c. For an economist, the cost of something is: )) the amount of money you paid for it. 6. what you gave up to get it. C) D) always equal to its market value. the quantity of resources used to produce it.

Explanation / Answer

Question 1

Macroeconomics is concerned with the study of economy as a whole.

Microeconomics is concerned with the study of individual units comprising the economy.

So,

The study of a single firm and how it determines prices would fall under microeconomics.

Hence, the correct answer is the option (B).

Question 2

Macroeconomics is concerned with the study of economy as a whole. It studies aggregate economic units like national income, inflation etc.

So,

The primary emphasis in macroeconomics is on the national economy.

Hence, the correct answer is the option (B).

Question 3

Economics is concerned with the problem of scarcity.

This problem of scarcity implies how people make choices in face of unlimited wants and limited means with alternative uses.

Hence, the correct answer is the option (C).

Question 4

Scarcity is the root cause of all economic problems.

Scarcity implies that resources needed to produce goods and services are limited but wants to be satisfied are unlimited and thus there is always unfulfilled wants as resources are not sufficient.

Hence, the correct answer is the option (A).

Question 5

Scarcity compels people to make choices.

Scarcity arises because wants are unlimited while resources are limited.

So, we have to make choices because resources are scarce.

Hence, the correct answer is the option (B).

Question 6

Economists measure cost of something in terms of its opportucity cost.

Opportunity cost implies the quantity of a thing that you have to give up to get the other thing.

So, for an economist, cost of something is what you gave up to get it.

Hence, the correct answer is the option (B).

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