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Week 1 Apply Assignment 1. Macroeconomics, focuses on the economy, large scale. Microeconomics focuses on the economy, small scale. 2. Which of the following scenarios most accurately reflects the concept of scarcity? - Brett is a farmer with an open field on which he can plant either soybeans or corn 3. The economizing problem is essentially one of deciding how to make the best use of - limited resources to satisfy unlimited economic wants 4. A recurring theme in economics is that people - have unlimited economic wants but limited resources. 5. According to the circular flow model, product markets are where - businesses earn their revenues from households. 6. The two basic markets shown by the simple circular flow model are - product and resource. 7. Which of the following is the best synonym for "marginal" in economics? - additional 8. The basic truth that underlies the study of economics is the fact that we all face - scarcity 9. Use the table below to answer the question Output Total cost 0 $10 1 $20 2 $28 3 $38 4 $53 5 $73 6 $98 The marginal cost of producing 3 units of output - $38 10. The main function of the entrepreneur is to - innovate 11. Pam sees that the price of bananas has risen in the grocery store. All else equal, she decides to buy more tangerines than she normally purchases. From the information given, you might conclude that: - tangerines and bananas are substitutes. 12. Marcus budgets $120 a week for groceries. When the price of all food goes up by 10% he buys less salmon. This can best be explained by: - the income effect.

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