Lesson 2 Quiz over Chapter 2 Flashcards Preview

Macroeconomics Mid-Term Exam 1st Half > Lesson 2 Quiz over Chapter 2 > Flashcards

Flashcards in Lesson 2 Quiz over Chapter 2 Deck (10):
1

Macroeconomic analysis is concerned with the economic activity of specific firms and industries.

False

2

In the circular flow model, firms...

sell goods and buy labor

3

The society's limited resources include land, labor, and capital.
True or False?

True

4

In a market economy the government owns most of the property resources (land and capital).
True or False?

False
In a command economy, the government owns most of the property resources (land and capital).

5

A positive statement is a statement of opinion.
True or False?

False
A positive statement is a statement which describes the world as it is.

6

What is a normative statement?
example?

Normative statement example:
The unemployment rate of 6.8 is too high.

7

The Production Possibilities Frontier is used to explain why society as a whole cannot have everything it might want.
True or False?

True
Choices outside the PPF are unattainable and choices inside the PPF are wasteful.

8

The market economy is a method where...

economic decisions are decentralized.

9

Allocative efficiency means...

that the particular mix of goods a society produces represents the combination that society most wants.

10

The two kinds of markets found in the circular flow model are...

goods/services and labor markets