Define economics and describe its branches of study
What will be an ideal response?
Economics is the social science that studies the choices made by individuals, businesses, government, and entire societies as they cope with scarcity. It has two branches, microeconomics and macroeconomics. Microeconomics is the study of the choices made by individuals and businesses, the way they interact, and the influence that governments exert on these choices. Macroeconomics is the study of the aggregate (total) effects on the national economy and the global economy of the choices that individuals, businesses, and governments make.
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The total income of capital and labor must equal the value of total:
A. production. B. revenue. C. investment. D. profits.
The United States imports t-shirts from Asia. As a result, U.S. consumers pay ________ otherwise and Asian producers receive ________ otherwise
A) a higher price than; a higher price than B) a higher price than; a lower price than C) a lower price than; a higher price than D) a lower price than; a lower price than E) the same price as; the same price as
The adult population of a country is 60 million. Of these adults, 20 million are employed and 30 million are unemployed. Therefore, the labor force of the country is _____
a. 40 million b. 30 million c. 50 million d. 60 million
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.