MacroEconomics Practice Problems, Chapter 1

MacroEconomics Practice Problems, Chapter 1 -...

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Practice Problems: Chapter 1 Question 1  (1 point)   With which one of the following statements would economists be most likely to  disagree ? Question 1 options: People respond to incentives. Making a choice involves an opportunity cost. Markets move towards equilibrium. Resources and inputs used in production are unlimited. Question 2  (1 point)   Macroeconomics is the branch of economics studying: Question 2 options: how prices are determined. why trade-offs exist. how decisions are made at the margin. fluctuations in the overall level of business activity. Question 3  (1 point)   Economists generally agree that people are most likely to change their behavior when they: Question 3 options: are asked to do so voluntarily. are given incentives to do so. live in a world without scarcity. live in a world without opportunity costs. Question 4  (1 point)
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  With which one of the following statements would economists be most likely to  agree ? Question 4 options: When transactions occur voluntarily, the seller gains and the buyer loses. Market economies generate economic growth, but they do not promote efficiency. People usually exploit opportunities to make themselves better off. If people make wise decisions, they can avoid incurring any opportunity cost.
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