Limited Resources, Study of Macroeconomics – Principles of Macroeconomics Homework
The key terms in this Principles of Macroeconomics course include Study, Tegan, opportunity cost, Good at cooking, Limited Resources, Microeconomics, individual economic units, limited resources and unlimited wants, Study of Macroeconomics, Principles of Macroeconomics Homework.
Suppose a student has 3 hours of time to spend at her apartment before afternoon classes. She has the option of doing laundry, studying for a test, or watching television. If she decides to do laundry, then her opportunity cost is
watching television.
either watching television or studying for the test, whichever would have been her second choice to doing laundry.
studying for the test.
watching television and studying for the test.
Explanation:
Opportunity cost is the highest-valued alternative that must be sacrificed in order to get something else. In this case, we can’t say which activity will be her opportunity cost since we don’t know which activity the student prefers between watching television and studying for the test.
Suppose that Tegan is good at cooking but not very good at cleaning up the kitchen afterward and that Sara is good at cleaning kitchens but not very good at cooking. Which of the following statements is true with regard to Tegan and Sara?
Sara should cook and clean up the kitchen.
Sara should cook and Tegan should clean up the kitchen.
Tegan should cook and Sara should clean up the kitchen.
Tegan should cook and clean up the kitchen.
Explanation:
If Tegan decided to specialize in cooking, she could trade meals to Sara in exchange for having the kitchen nice and clean. This shows gains from specialization and trade. Both people have a comparative advantage in doing one particular task. Since both people can specialize in what they do best, they are able to produce more value than if they tried to do both things themselves.
The concept of scarcity in economics refers to
limited resources and limited wants.
unlimited resources and limited wants.
the fact that resources can sometimes be limited.
limited resources and unlimited wants.
Explanation:
Even the most abundant physical resources, like the water we drink and the air we breathe, are limited in their use. A particular cup of water, for example, can only be used for one purpose at a time. Scarcity refers to the limited nature of society’s resources, given society’s unlimited wants and needs.
The difference between the study of microeconomics and the study of macroeconomics is a difference between
the study of individual economic units and the study of aspects of the economy as a whole.
the study of government policy and the study of the private sector.
individuals and families.
single individuals and large companies.
Explanation:
Microeconomics is the study of the individual units that make up the economy, whereas macroeconomics is the study of the overall aspects and workings of an economy.