macroeconomics

       Ensures people become satisfied with less than they want.        Exists only during a recession        Exists only in some countries        Requires people to make choices

       Natural resources, such as minerals, timber, and water, as well as land itself.        The physical and intellectual services of technological advances.        Buildings and warehouses, but not factories.        Inventories        Automobiles

       A labor resource        land or a natural resource        an entrepreneur        human capital        a capital resource

       because economic theory is an accurate reflection of the real world.        to make the theory more complicated        to isolate the important variables when formulating the theory        primarily to identify unstable equillibrium situations.        so that economists can impress others with their fluency in latin

       two apples        three oranges        two apples and three oranges        two apples or three oranges, whichever you most prefer        the difference in the prices of the three options

       represents the use of more resources than are available        represents the use of less resources than are available.        represents a state of high unemployment for that nation.        could easily be achieved if people would just work harder.        can never be achieved, even if more resources are obtained by the nation.

       An increase in the amount of unemployment.        A decrease in the size of the working-age population.        An increase in the quality of labor resources.        A reduction in unemployment        a decline in the formation of new capital.

       25 units of food        5 units of food        10 units of clothing        35 units of food        3.5 units of clothing

       The price of a basket of goods stated in 1992 dollars.        a price that is set on the black market.        The price of one good expressed in the terms of the price of another good.        The price of one good expressed in terms of the prices of all other goods.        The money price of a good.

       The demand for CDs would increase        The quantity demanded for CDs would increase        The quantity demanded for CDs would decrease        The demand for CDs would decrease        The quantity demanded for CDs would not change.

       30, 40, 50, 60, 70        30, 60, 90, 120, 150        30, 50, 70, 90 ,1100        10, 40, 50, 60, 70        10, 20, 30, 40, 50

       demand to increase        A decrease in the popularity of golf.        An increase in the number of golfers        An expected increase in the price of golf balls        A decrease in the price of golf balls

       An inward shift of the demand curve for restaurant meals        An outward shift of the demand curve for home-delivered meals        An increase in the number of resources used for home delivered meals.        A decrease in the number of resources used in restaurant meals        A reduction in the value of resources used in home-delivered food.

       minimizes, minimizes        maximizes, maximizes        eliminates, maximizes        maximizes, minimizes        minimizes, maximizes

       it is the business firms who ultimately determine what is produced        it is the consumer who ultimately determines what is produced because they will purchase the item or not.        it is the entrepreneurs who ultimatly determine what is produced since they invent it.        it is the government who ultimately determines what is produced since the government is always in control.        it is the stockholders who ultimately determine what is produced since they must be able to make money or they won't invest in it.

       It will remain in business for a long time.        It will produce more.        It will not remain in business very long        it will "buy out" its competitors.        it will grow

       market imperfections        positive externalities        the existence of private property rights        public goods        incentives to free-ride on others

       imperfect information        prices that reflect the full costs of production and consumption        the absence of warning labels on dangerous products        fraudulent activites by market participants        people having different amounts of information.

       only the direct costs created in a transaction        only the externalities of a transaction        the full costs of producing and consuming a good or service        the full costs of producing a good, but not consuming it        the full costs of consuming a good, but not producing it

       taxing the victim of the externality        Establishing a government agency to regulate the problem        Taxing the imposer of the externality        Assigning property rights        None of the above