Economics is primarily the study of
a. why people like to make money.
b. the management of a business.
c. the choices people make as the result of scarcity.
d. how to make money in the stock market.
c. the choices people make as the result of scarcity.
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When a nation exports a good, its ________ surplus decreases, and when it imports a good, its ________ surplus decreases
A) consumer; producer B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer
If grocery stores in high-crime areas charge higher prices than stores elsewhere, it is because
A) each item sold must bear its share of the higher insurance costs. B) residents of high crime areas tend to be less price-conscious shoppers. C) the costs of crime are a legitimate cost of doing business. D) the store owners are not setting marginal cost equal to marginal revenue. E) there is less competition between stores in high-crime areas.
The majority of economists feel that ______.
a. the central bank should follow political business cycles b. the central bank should support the wishes of the incumbent party c. fiscal policy should take the lead role in stabilization d. monetary policy should take the lead role in stabilization
The reason that differences in economic growth rates are important in the long run is that
A. real GDP usually drops when adjusted for inflation. B. population naturally shrinks in most countries. C. nominal GDP typically increases faster than real GDP. D. growth compounds over time.