Question

27 multiple choice 1 point
what is potential gdp?
a measure of what the economy is capable of producing at full employment
a measure of what the economy will produce in the future
a measure of the economys current production
a measure of what the economy has produced in the past

28 multiple choice 1 point
what is the main way that government affects the economy?
by spending money and collecting taxes
by making laws that impact economic conditions
by controlling foreign trade

29 multiple choice 1 point
what are economists referring to when they say \scarce\?
abundant resources.
resources that are not available to everyone.
limited resources.

30 multiple choice 1 point
what does it mean when economists say people make decisions at the margin?
people make decisions by considering small changes
people make decisions by considering big changes only
people make decisions by considering random changes

31 multiple choice 1 point
what is a demand curve?
a curve that shows the marketing efforts for a good
a curve that shows the production cost of a good
a curve that shows the relationship between a goods price and how much people want it
a curve that shows the relationship between a goods quality and its price

Explanation:

Analyze Question 27: Potential GDP

Potential GDP represents the maximum sustainable level of output that an economy can produce when it operates at full employment of its resources.

Analyze Question 28: Government's economic impact

The primary, most direct, and comprehensive ways a government influences the macroeconomy are through fiscal policy, which consists of spending money and collecting taxes.

Analyze Question 29: Definition of scarcity

In economics, scarcity refers to the fundamental economic problem of having unlimited human desires but limited resources available to satisfy those needs.

Analyze Question 30: Decisions at the margin

Making decisions at the margin means evaluating the additional, incremental benefits and costs of a small change in a current plan of action.

Analyze Question 31: Demand Curve

A demand curve is a graphical representation showing the relationship between the price of a good and the quantity demanded (how much people want to buy) at each price level.

Answer:

Question 27

• A measure of what the economy is capable of producing at full employment (Correct answer)
• A measure of what the economy will produce in the future
• A measure of the economy's current production
• A measure of what the economy has produced in the past

Question 28

• By spending money and collecting taxes (Correct answer)
• By making laws that impact economic conditions
• By controlling foreign trade

Question 29

• Abundant resources.
• Resources that are not available to everyone.
• Limited resources. (Correct answer)

Question 30

• People make decisions by considering small changes (Correct answer)
• People make decisions by considering big changes only
• People make decisions by considering random changes

Question 31

• A curve that shows the marketing efforts for a good
• A curve that shows the production cost of a good
• A curve that shows the relationship between a good's price and how much people want it (Correct answer)
• A curve that shows the relationship between a good's quality and its price