Lesson 1 Short Answers

Question 1

What does microeconomics apply to?

Answer 1

Generally applies to markets of goods and services and deals with individual and economic issues (small pic)

Question 2

What’s an example of microeconomics?

Answer 2

The way a family plans its spending for a vacation

Question 3

What does macroeconomics focus on?

Answer 3

It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation(Things that apply to the whole nation- Big picture)

Question 4

Are goods or services tangible

Answer 4

Goods are tangible bc they can be touched but services are not bc they can’t be touched

Question 5

What determines value?

Answer 5

The cost that someone is willing to pay for something

Question 6

What is the solution of the paradox of value

Answer 6

Scarcity and utility are 2 factors that determine value

Question 7

Are goods or services counted as wealth

Answer 7

Goods

Question 8

Is anything for free?

Answer 8

No