Indicate whether each of the following statements applies to microeconomics or macroeconomics:

The consumer price index rose by $1.6 \%$ in $2010$.

Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing$25 each and the movie tickets start off costing $10 each. For each of the following situations, would the attainable set of combinations that you can afford increase or decrease?

. Your budget increases from$100 to $150 while the prices stay the same.

a. Your budget remains$100, and the price of books remains $25, but the price of movie tickets rises to$20.

b. Your budget remains $100, and the price of movie tickets remains$10, but the price of a book falls to $15.

Indicate whether each of the following statements applies to microeconomics or macroeconomics:

A U.S. software firm discharged $15$ workers last month and transferred the work to India.

Match each term with the correct definition.\ economics
opportunity cost
marginal analysis
utility
a. The next-best thing that must be forgone in order to produce one more unit of a given product.
b. The pleasure, happiness, or satisfaction obtained from consuming a good or service.
c. The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.
d. Making choices based on comparing marginal benefits with marginal costs

Which unemployment rate do most economists consider to be acceptable in the United States?

The theory of consumer behavior assumes that consumers attempt to maximize?

Match each term with the correct definition.

economics

opportunity cost

marginal analysis

utility

a. The next-best thing that must be forgone in order to produce one more unit of a given product.

b. The pleasure, happiness, or satisfaction obtained from consuming a good or service.

c. The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.

d. Making choices based on comparing marginal benefits with marginal costs.

What are the two major ways in which an economy can grow and push out its production possibilities curve?
a. Better weather and nicer cars.
b. Fligher taxes and lower spending.
c. Increases in resource supplies and advances in technology.
d. Decreases in scarcity and advances in auditing

Which of the following are considered money in the U.S. economy? Which are not? Explain your answer by discussing each of the three functions of money.

a Mexican peso

Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: The number of unemployed workers increases.

Suppose you won the lottery and had two options: (1) receiving $0.5 million or (2) taking a gamble in which, at the flip of a coin, you receive$1 million if a head comes up but receive zero if a tail comes up. a. What is the expected value of the gamble? b. Would you take the sure $0.5 million or the gamble? c. If you chose the sure$0.5 million, would that indicate that you are a risk averter or a risk seeker? d. Suppose the payoff was actually $0.5 million—that was the only choice. You now face the choice of investing it in a U.S. Treasury bond that will return$537,500 at the end of a year or a common stock that has a 50–50 chance of being worthless or worth $1,150,000 at the end of the year. 1. The expected profit on the T-bond investment is$37,500. What is the expected dollar profit on the stock investment? 2. The expected rate of return on the T-bond investment is 7.5%. What is the expected rate of return on the stock investment? 3. Would you invest in the bond or the stock? Why? 4. Exactly how large would the expected profit (or the expected rate of return) have to be on the stock investment to make you invest in the stock, given the 7.5% return on the bond? 5. How might your decision be affected if, rather than buying one stock for $0.5 million, you could construct a portfolio consisting of 100 stocks with$5,000 invested in each? Each of these stocks has the same return characteristics as the one stock—that is, a 50–50 chance of being worth zero or $11,500 at year-end. Would the correlation between returns on these stocks matter? Explain.

Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: The quality of education increases.

Complete the following sentences so that your answers clearly explain the key terms. A key process in the scientific method is the collection of data, which are _________.

State (a) a positive economic statement of your choice, and then (b) a normative economic statement relating to your first statement