1. Economics: A. is a very narrow field of study. B. is a way of analyzing decision-making processes caused by scarcity. C. is concerned with proving that capitalism is better than socialism. D. focuses on how a business should function. 2. The basic difference between macroeconomics and microeconomics is: A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. B. microeconomics concentrates on the behaxiqur of individual consumers while macroeconomics focus on the bebaviour of firms. C. microeconomics concentrates on the behavigut of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
1. Economics: A. is a very narrow field of study. B. is a way of analyzing decision-making processes caused by scarcity. C. is concerned with proving that capitalism is better than socialism. D. focuses on how a business should function. 2. The basic difference between macroeconomics and microeconomics is: A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. B. microeconomics concentrates on the behaxiqur of individual consumers while macroeconomics focus on the bebaviour of firms. C. microeconomics concentrates on the behavigut of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:1. Economics:
A. is a very narrow field of study.
B. is a way of analyzing decision-making processes caused by
scarcity.
C. is concerned with proving that capitalism is better than
socialism.
D. focuses on how a business should function.
2. The basic difference between macroeconomics and microeconomics is:
A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on
international trade.
B. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses
on the behaxiour of firms.
C. microeconomics concentrates on the behaviaur of individual consumers and firms while
macroeconomics focuses on the performance of the entire economy.
D. microeconomics explores the causes of inflation while macroeconomics focuses|on the causes of
unemployment.
3. Why is there scarcity?
A. Because the opportunity set determines this.
B. Because theory dictates it.
C. Because our unlimited wants exceed our limited resources
D. Because human wants are limited.
Expert Solution
Step 1
Question 1:
Economics is a way of analyzing decision-making processes caused by scarcity.
because
It is not a narrow field as it not only thinks of resources but also of the scarcity of resources and the alternatives to use in the best manner.
It not only deals with capitalism but also includes socialism as they deal with the combination of both.
It not only focuses on the business functionality but also on the environment of the business and related ones.
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