Provide two examples of economics being used as a tool by each of a student, a business, and a government. Classify your examples as dealing with microeconomic topics and macroeconomic topics
What will be an ideal response?
Students might answer that they use economics as a tool when they budget their student aid and when they decided which college to at-tend based on the costs of their options. Both instances deal with micro-economics. A business uses economics as a tool when it decides the price it charges for its product and the salaries it pays its managers. Both instances are microeconomic examples. The government use economics as a tool when it decides whether to increase taxes on cigarettes or lower the interest rate. The first example is microeconomic in nature and the second involves macroeconomics.
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If the inflation rate in the United States is higher than that in Mexico and productivity is growing at a slower rate in the United States than in Mexico, then, in the long run, ________, everything else held constant
A) the Mexican peso will appreciate relative to the U.S. dollar B) the Mexican peso will depreciate relative to the U.S. dollar C) the Mexican peso will either appreciate, depreciate, or remain constant relative to the U.S. dollar D) there will be no effect on the Mexican peso relative to the U.S. dollar
Refer to Figure 14.1. Other things equal, an increase in government spending on infrastructure projects is best represented as a movement from
A) point X to point Y. B) point Z to point X. C) point Z to point Y. D) point Y to point X.
The demand curve for dolls shows the quantity of dolls demanded
a. by suppliers of those dolls b. by U.S. consumers c. at the equilibrium price for dolls d. at each level of income e. at each possible price of dolls
An exterior painting company is contemplating buying a bigger truck and ladder. This is a
a. bad decision because average costs will be higher b. good decision because average costs will be lower c. long-run decision d. short-run decision e. bad decision because more fuel will be needed