Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1. Macroeconomists study
a.
the decisions of individual households and firms.
b.
the interaction between households and firms.
c.
economy-wide phenomena.
d.
regulations imposed on firms and unions.
2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists
study?
a.
Unemployment rate falls from 7.5 percent to 7.3 percent.
b.
Real GDP falls by 0.4 percent in the third quarter.
c.
Inflation was 2.4 percent last year.
d.
The price of gasoline rises due to rising oil prices.
3. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?
a.
Why do prices in general rise by more in some countries than in others?
b.
Why do wages differ across industries?
c.
Why do national production and income increase in some periods and not in others?
d.
How rapidly is GDP currently increasing?
4. Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?
a.
the effect of taxes on the prices of airline tickets, and the profitability of automobile-manufacturing firms
b.
the price of beef, and wage differences between genders
c.
how consumers maximize utility, and how prices are established in markets for agricultural products
d.
the percentage of the labor force that is out of work, and differences in average income from country to
country
5. A macroeconomist is interested in
a.
explaining how changes in sellers’ behavior affect prices of a particular good.
b.
explaining price changes in a particular market.
c.
explaining why the unemployment rate is higher.
d.
All of the above are correct.
6. Which of the following is not a question addressed by macroeconomists?
a.
Why is average income high in some nations but low in others?
b.
What, if anything, can the government do to promote growth in incomes, low inflation, and stable
employment?
c.
What is the impact of foreign competition on the U.S. auto industry?
d.
Why do production and employment expand in some years and contract in others?
7. Which of the following is not a question that macroeconomists address?
a.
Why is average income high in some countries while it is low in others?
b.
Why does the price of oil rise when war erupts in the Middle East?
c.
Why do production and employment expand in some years and contract in others?
d.
Why do prices rise rapidly in some periods of time while they are more stable in other periods?
8. The basic tools of supply and demand are
a.
useful only in the analysis of economic behavior in individual markets.
b.
useful in analyzing the overall economy, but not in analyzing individual markets.
c.
central to microeconomic analysis, but seldom used in macroeconomic analysis.
d.
central to macroeconomic analysis as well as to microeconomic analysis.
9. Which of the following statistics is usually regarded as the best single measure of a society’s economic well-being?
a.
the unemployment rate
b.
the inflation rate
c.
gross domestic product
d.
the trade deficit
10. GDP
a.
is used to monitor the performance of the overall economy but is not the single best measure of a society’s
economic well-being.
b.
is used to monitor the performance of the overall economy and is the single best measure of a society’s
economic well-being.
c.
is not used to monitor the performance of the overall economy but is the single best measure of a society’s
economic well-being.
d.
is not used to monitor the performance of the overall economy and is not the single best measure of a society’s
economic well-being.
