1. the study of economics can best be described as the study of

a) the factors that influence the stock and bond markets.

b) capitalism

c) the choices made in producing goods and services.

d) coping with scarcity and choices made as a result of scarcity in a society.

e) none of the above is correct.

2. If there ever was a year that the U.S economy operated outside its production possibilities frontier it would have occurred in what year?

a) 1929

b) 1935

c) 1944

d) 1973

e) 1999

3. Macroeconomics includes the study of

a) the aggregate effects on the national economy and the global economy of the choices made by individuals businesses and governtment.

b) the choices that individuals and businesses make the way these choices interact and the influence that governments exert on these choices.

c) how prices for individual goods are determined.

d) how government policies impact salaries of specific occupations.

e) none of the above is correct.

4. Statement 1: When our labor unemployment rate is at 5% we are at full employment.

Statement 2: Full employment and full production mean virtually the same thing.

a) Statement 1 is true; Statement 2 is false.

b) statement 1 is false; Statement 2 is true.

c) both statements are true

d) both statements are false

5. The economic choices made by individuals businesses and governments and the interactions of those choices answer which three questions?

a) what? how? and why?

b) what? how? and for whom?

c) why? how much? and at what price?
at what price? what? and why?