Micro Economics milestone 1 Questions and Correct Answers | Updated & Verified

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Micro Economicsmilestone 1 The same term can be used to fill in all of the blanks on this portion ofthe circular flow diagram.Select the correct term from the options below.StakeholdersSellers�... ��BuyersHouseholds RATIONALEHouseholds interact with firms in this portion of the circular flow model.CONCEPTCircular Flow ModelReport an issue with this question2 Which of the the following is the best definition of an economy?When buyers and sellers get together, and everyone's needs arealways met.A social system that coordinates the interaction among decision-makers about the use of society's scarce resources.A collection of businesses like Walmart that always have plenty ofresources. When limited wants are satisfied by unlimited resources.RATIONALEThis is the best definition of an economy: It is about a social system making decisionsabout the use of scarce resources.CONCEPTThe EconomyReport an issue with this question3 Which statement below is true regarding a cost-benefit analysis?Add the total costs to the total benefits to get the desired number forthe cost-benefit analysis.Cost-benefit analysis is unique to economics and economists.A cost-benefit analysis is not the same as a pro/con list.Unlike a pro/con list, every cost and benefit always has a monetaryvalue assigned to it.RATIONALEPro/con lists just look at reasons to be in favor or against a particular decision, whilecost-benefit analysis compares total monetary costs to total monetary benefits. CONCEPTCost Benefit AnalysisReport an issue with this question4 Which of the following is an example of microeconomics?A study showing how fast the U.S. economy is growingA study on where housing prices are rising fastest. A study that analyzes the reasons why one nation's economy hasgrown faster than another nation's economyA study analyzing a nation's inflation rateRATIONALEA study of rising housing prices is part of microeconomics because microeconomicsdeals with topics related to consumers. The other answers are topics formacroeconomics, which deals with broader topics for entire nations.CONCEPTMicroeconomics and MacroeconomicsReport an issue with this question5 [Show More]

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