Macroeconomics Study Set 19

Changes in global weather patterns can lead to

In economics,choices must be made because we live in a world of

Which of the following statements is true about scarcity?

The basic economic problem of ________ has always existed and will continue to exist.

By definition,economics is the study of

An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue.

Where do economic agents such as individuals,firms and nations,interact with each other?

The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade.

Economists assume that individuals

Economists assume that rational behavior is useful in explaining choices people make

Economists assume that rational people do all of the following except

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

Consider the following statements: a.Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area. B.Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment. C.Firms produce more of a particular DVD when its selling price rises. Which of the above statements demonstrates that economic agents respond to incentives?

As professors and teachers get closer to retirement age they typically spend more time reading and thinking about the financial planning as well as the stock market.By gathering and using all available information as they act to achieve their goals,these teachers are exemplifying the economic idea that

Suppose your provincial government encouraged new medical school graduates to take over rural and small town practices from doctors wishing to retire by paying both the new and retiring doctors $100,000.These doctors would be exemplifying the economic idea that

Obesity is one of the biggest health challenges facing Canadians,with few Canadians getting the recommended amount of daily physical activity.Economists would expect

By charging users that skip workouts,the designers of GymPact are

In economics,the term ________ means "additional" or "extra."

A grocery store sells a bag of potatoes at a fixed price of $5.50.Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?

Economists reason that the optimal decision is to continue any activity up to the point where the