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C719 Macro Study Guide.docx C719 - Macroeconomics - Study Guide Questions V2 The followi

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C719 Macro Study Guide.docx C719 - Macroeconomics - Study Guide Questions V2 The following questions are developed as a study aid for C719 - Macroeconomics. They cover important concepts in each competency. Â After rea ...

C719 Macro Study Guide.docx C719 - Macroeconomics - Study Guide Questions V2 The following questions are developed as a study aid for C719 - Macroeconomics. They cover important concepts in each competency. Â After reading the material for each competency, use these questions to reinforce your understanding and review further as necessary. There is no answer key; however, your Course Instructor will be happy to go over these with you.Â You can download a Word version of these questions at the bottom of the page. Competency 1: The Economic Way of Thinking Module 1 1.What is scarcity in economics and how does it influence choices? 1.Scarcity is the inability to satisfy everyones wants; it affects choices made by individuals and businesses in the face of unavailability of unlimited resources. Without scarcity, there is no need to make choices about which needs/desires to satisfy 2.Define Opportunity Cost. 1.The full value of the next best alternative that is not selected. Example: cost of going to a football game includes the value of what is given up in order to attend. The opportunity cost of attending the game consists of both the price of the ticket and the difference in your test grade that three more hours of studying would have produced. 3.How does the Production Possibilities Frontier (PPF) (also called as Production Possibilities Curve (PPC)) illustrate the concept of trade-offs? 1.Production Possibilities Curve is societys choice curve; it shows the various outpout combinations of two go. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . .

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