chpt 1

?Ralph Waldo Emerson once wrote: "Want is a growing giant whom the coat of have was never large enough to cover." This statement relates to the definition of economics because wants are unlimited and resources are scarce.  In a market system scarce resources are allocated through the operation of   what must be sacrificed in using a resource for its next best use.    Suppose a city block was going to be used for a parking lot. The opportunity cost would be   greater in New York City because the alternative uses of the block are more valuable.  revised 4/11/11 Which of the following best describes the concept of utility and economic behavior?   The satisfaction from consuming goods or services  revised 4/11/11 Indicate whether each of the following statements applies to microeconomics or macroeconomics:   a. The unemployment rate in the United States was 9.0 percent in April 2011. Macroeconomics    b. A U.S. software firm discharged 15 workers last month and transferred the work to India. Microeconomics    c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise. Microeconomics    d. U.S. output, adjusted for inflation, decreased by 2.9 percent in 2010. Macroeconomics    e. Last week, Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point. Microeconomics    f. The consumer price index rose by 1.6 percent in 2010. Macroeconomics  revised 4/11/11 How (if at all) do each of the following events affect the location of a country’s production possibilities curve?   a. The quality of education increases: Curve shifts outward    b. The number of unemployed workers increases: No change    c. A new technique improves the efficiency of extracting copper from ore: Curve shifts outward    d. A devastating earthquake destroys numerous production facilities: Curve shifts inward   As a consequence of the condition of scarcity: there is never enough of anything. production has to be centrally planned. things that are plentiful have relatively high prices. individuals and communities have to make choices from among alternatives. Economics can best be described as the study of: how to increase the level of productive resources so there is maximum output in society. how to use productive resources to maximize income level. how people, institutions, and society make choices under conditions of scarcity. how business structures influence the allocation of income among firms. The utility of a specific product: is determined by consumer income. is determined by the price of the product. varies from person to person using the product. is constant from person to person using the product.