HW 1 ECON

In countries like _________ the command economy predominates.

In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made.

Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

Which of the following is generally accepted as a valid criticism of the production of useful goods and services?

In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.

If macroeconomics looks at the economy as a whole, it focuses on which of the following?

In the ____________, households work and receive payment from firms.

In the ______________, households receive goods and services and pay firms for them.

Which of the following best describes a monetary policy tool?

Which of the following best describes a fiscal policy tool?

When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being:

The basic difference between macroeconomics and microeconomics is:

Which of the following is most likely a topic of discussion in macroeconomics?

Which of the following statements most likely lies within the realm of microeconomics?

Specialization:

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

The circular flow diagram of economic activity is a model of the:

_____________ - a term referring to the fact that for many goods, as the level of production increases, the average cost of producing each individual unit declines.

Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories.