Exam 1 - Question 1 Macroeconomics can best be described as...

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Question 1 2 points Save Macroeconomics can best be described as the: analysis of how a consumer tries to spend income. study of the large aggregates of the economy or the economy as a whole. analysis of how firms attempt to maximize their profits. study of how supply and demand determine prices in individual markets. Question 2 2 points Save Purposeful behavior suggests that: everyone will make identical choices. resource availability exceeds economic wants. individuals will make different choices because of different desired outcomes. an individual's economic goals cannot involve tradeoffs. Question 3 2 points Save (Last Word) The fallacy of composition is essentially the error of: omitting relevant variables in constructing a model. reasoning from the general to the particular. confusing cause and effect in economic relationships. generalizing from the particular to the general. Question 4 2 points Save "Economics is concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity." This statement is: positive, but incorrect. positive and correct. normative, but incorrect. normative and correct. Question 5 2 points Save (Consider This) In response to the terrorist attacks of September 11, 2001, the government decided to allocate more resources toward defense goods. The government's decision reflects their assessment that:
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the marginal benefits of additional defense goods outweighed the marginal cost. the marginal cost of additional defense goods outweighed the marginal benefit. there cannot be too many defense goods. civilian goods are not worth producing. Question 6 2 points Save (Last Word) The Social Security program (excluding Medicare) in the United States is projected to: grow from 4.4 percent of GDP today to 6.5 percent of GDP in 2035. grow from 1.0 percent of GDP today to 4.4 percent of GDP in 2035. decline from 4.4 percent of GDP today to 1.0 percent in 2035. stay relatively constant at 3 percent of GDP into the future. Question 7 2 points Save Externalities: relate to costs only. relate to benefits only. relate to both costs and benefits. have been legislated out of existence. Question 8 2 points Save The three basic legal forms of business enterprise are: monopolists, competitors, and enterprises. proprietorships, partnerships, and corporations. vertical, horizontal, and conglomerate corporations. conglomerates, multinationals, and partnerships.
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Exam 1 - Question 1 Macroeconomics can best be described as...

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