E) raise taxes by an amount more than $200 billion. What determines the growth rate of gross domestic product? The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill Each point on a demand curve shows Difference Between Microeconomics & Macroeconomics - BYJUS 300+ TOP Macroeconomics MCQs and Answers Quiz Exam If the ________ cost of production for two goods is different between two countries then mutually beneficial trade is possible. B) higher; lower D. Are willing to pay the highest price. D) total welfare is greater. b. Which of the following is a macroeconomics question? B. Ask an Expert. B) the federal income tax. What were the macroeconomic principles or models that influenced your decision making?] D) lower; lower, If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy? D) The demand for video game consoles would increase and the equilibrium price of video game consoles would increase. C) 3% B) Yes, the recession will lower income in my field permanently. You earn _________ How does this affect the market for traditional inkjet printers? B. Utilizes both market and non market signals to allocate goods and services. \text{Grooming}&\text{\underline{\hspace{15pt}80,000}}\hspace{10pt}&\text{Grooming direct labor hours}&\text{\hspace{10pt}4,000}\\ C.. Which of the following is an example of a "how much" decision? A) the price of sailboats increased and the demand for sailboats decreased." B) an increase in government spending b. real costs. \text{Total indirect costs}&\text{\underline{\underline{\$\hspace{5pt}380,000}}}\hspace{10pt}\\ D) a decrease in oil prices, The aggregate demand curve will shift to the left ________ the initial decrease in government purchases. B) Trade Without Borders. D) GDP falls by $1,875. When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada, the value of the furniture produced will be counted as a final good in B) far less difficult than with monetary policy. To understand society and global affairs B) 2.5% Keynesian Economics Questions and Answers - Study.com D. All of the choices are correct. A) GDP rises by $1,875. B) the economy produces only two products. a. MCQs on Introduction to Macroeconomics - BYJUS D) a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses. D) a demand curve has shifted to the right. D. some people live better than others do. C) The quantity of inkjet printers demanded increases. B. stabilize the price level. C. do have an economic problem but are solving it. From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then Congress and the president would most likely ________ Macroeconomics, 4e (Hubbard/O'Brien) Chapter 1 Economics: Foundations Who, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy? Multiple Choice Quiz - Oxford University Press D) quantity of Dell employees. Which of the following is a macroeconomics question? The term economic system refers to the way in which a society organizes the production and distribution of good and services. a. b. Which of the following events would allow the production possibilities curve to shift outward? C. the tendency of many economic variables to move together in a predictable way over the business cycle. Because Mike started looking for a new job ______________ c. What were some of the reasons that the Egyptian government built the Aswan High Dam? b. C) investment; consumption D) The government imposes taxes on those who earn beyond a certain amount of income. Rational cost B. The market mechanism c. Is one-half cost of the game, as this is the second time you have played it He faces scarcity because his resources are unlimited First, the poor tend to hold most of their financial assets in the form of cash rather than in interest-bearing assets. The production possibilities curve illustrates which two of the following essential principles? D. a country's population is larger than its resource base. b. If the BLS counted persons that are on active military service in the totals for employment, the labor force, or the working-age population, this would _______________ Should the government attempt to influence the interest rate to lower inflation? B) The quantity of traditional camera film demanded decreases. It does not consider discouraged workers, and hence it is understated. The minimum wage law causes unemployment. C) NAFTA. Choose 1 answer: Hors many smartphones should Samsung produce this quarter? Mike has been unemployed for over a year. A) 5 times as much as your grandfather in terms of real income. Answering these four questions is essential for an economy to function properly. A. producing more of one good means less of another good can be produced. An increase in ____________ C) a change in the amounts of one good desired. Question: Which of the following is a macroeconomics question? is a corporation unresponsive to the demands of its customers? b. d. Dollar cost, T/F The process of analyzing the additional costs or benefits which arise from a decision is known as marginalism, You own the video game Grand Theft Auto V. The opportunity cost of playing this game for the second time A) cyclical D) rises; Marla becomes more productive once she's married. Macroeconomics Basics. \hline Macroeconomics Multiple Choice Questions 1. C) total spending in 2015 was around $17.3 trillion. Let us now understand how it is different from Microeconomics. B. 3. The following questions relate to long-run macroeconomic B) increase the measured labor force participation rate. Simple economies can be described in terms of three major economic Microeconomics is concerned with issues such as B) partial Which of the following is not a function of money? Group of A) an increase in the number of people in the labor force Expected inflation is 2.3% and actual inflation may be greater by 0.4%, calculate the impact on the S&P500 projected return ( How would the projected return change) Create a portfolio invested in Boaz Allan (BAH) and Five9 (FIVN) with the . C) do not change; overestimates B. Bureaucratic delays Microeconomics is the study of a single unit or a single firm whereas the macroeconomics is.. (a). C. Macroeconomic failure. The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. D) upward sloping. D) a decrease in the minimum wage, Which of the following policies would reduce structural unemployment? A ________ can change over time or across observations. Macroeconomics is a branch of economics that depicts a substantial picture. C) looking for work is your only option. How do you go about weighing the alternatives? b. The price of steel declined by 3% last year. D) decreasing the money supply and increasing interest rates. To Liza, By definition, economics is the study of B) the underground economy. Market failure. Answer: B Use the following diagram to answer questions 36-39: 36. Explain how these higher income taxes will affect the aggregate demand curve. C) Brazil's GDP. Select one: a. Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes? B. A. supply and demand. A) an increase in the money supply and a decrease in interest rates B) more than 5 times as much as your grandfather in terms of real income. A. central bank prints more money B. increase in household savings C. decrease in borrowing by private firms D. foreign financial investors D) a contractionary; an expansionary. e. As a public safety measure, the state of Texas should not pass legislation that allows people with concealed handgun permits to carry concealed weapons on college campuses, A-Positive A) the Income Security Tax. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Works through central planning by government. A) Micah purchases a new wrench for his auto repair business. The aggregate demand and aggregate supply curve intersect. D) They are included only if they are imported, Which of the following are not considered part of government purchases? C) demographics Q: Choose the statement that does not describe Microeconomics. A) average price levels of goods and services in the economy. D) efficient central planning. C) the value of all cars produced by Toyota in the United States D) The minimum wage in Europe is lower than it is in the United States. C) a discouraged worker D. all of the above Answer: D.all of the above 2. View Answer The key. A. B) European countries offer higher unemployment benefits than the United States. Microeconomics is the study of Which of the following statements is not true? C) automatic stabilizers; monetary policy although this definition differs from state to state. C) ensure safe imports. a. GDP is not a perfect measure of well-being because _________ A) he lettuce that Subway purchases for its sandwiches D) decrease the number of persons in the working-age population. a. B) a natural disaster like a hurricane or bad earthquake. the same weight of goods has been imported as were exported. B. D) incorporates substitutions by consumers when prices of specific products fall rapidly. C) wages paid to employees by Dell. MCQ Questions for Class 12 Economics Chapter 1 - NCERT Books B. D) The demand curve for traditional camera film shifts to the left. These firms are reacting to which of the three key economic ideas? A) ice cream and hot fudge are complements. C) The demand for video game consoles would decrease because consumers could afford to buy fewer LCD televisions and video game consoles. Every society faces economic tradeoffs. D) Sarah is not experiencing unemployment of any kind, because she is not currently part of the labor force. A) at prices that violate government price regulations. D. marginal costs The police were surprised the bank did not take their advice. A. The use of market prices and sales to signal desired output. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? On which base structure of economic problems has been installed? B. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. there is a current account surplus. Full employment is not considered to be zero unemployment, because D. The best alternative use of your time. C. Lassiez faire price policies. Factors of production and price signals. By how much and in what direction does GDP change as a result of his efforts? D. workers deciding to produce only what the boss says must be produced. B. The opportunity cost of taking an on-line history class is The production possibilities curve illustrates which two of the following essential principles? What are the differences and similarities between behaviorism, psychodynamic, and humanistic perspectives? How does a market system prevent people from getting as many goods and services as they wish? A) decreased government regulations on businesses. A) the value of all cars produced by General Motors in the United States 7 Principles of Macroeconomics- Chapter 1 C) increase flows (2) and (3) and reduce flows (6) and (7). d. The market mechanism at work. C. Market success. If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, economists would describe this as_______ BOOK Market Leader intermediate 3rd edition. A) inflation International economics. Three Economic Questions: What, How, For Whom? | Encyclopedia.com B) What determines the production of video game consoles? D. Economic growth and market failure. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. that negatively affect an individuals health and safety, D) automatic monetary policy, Since the Social Security system began in 1935, the number of workers per retiree has __________ c. The price of gasoline A) deadweight loss is maximized C. the highest valued alternative that must be given up to engage in an activity. C) changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives. Historically, there have been three basic types of economic system: traditional, command, and market. During a business cycle expansion, total production ________ and total employment ________. View Answer. C. Relies on the use of central planning by private firms rather than the government. D-Positive Microeconomics answers - Math Methods The Federal Reserve lowered interest rates at its last meeting. A) above; surplus D) buys U.S. government bonds. Suppose a drought resulted in a major reduction in the California lettuce crop. If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest? Aggregate unemployment Sarah is a full-time student who is not looking for work. (a) 3,6,12,3,6,12, \ldots3,6,12, When the variable measured along the x-axis and the variable measured along the y-axis move in the same direction, it indicates a ________ relationship between the two variables. A) everyone who wants a job has a job. The equilibrium aggregate price level and level of aggregate output occur when. the person is unable to care for himself or herself, also b. It is an example of the coincidental fallacy Economics is the study of the ________ people make to attain their goals, given their________ resources. Government failure. D. There is too much production of lowcost, highquality goods and services. See Answer. D. Who gets jobs; what wages do workers earn; and who owns what property? Which of the following statements about positive economic analysis is true? d. Comparative economic systems, Determine whether the following is covered by microeconomics or macroeconomics C) decrease. B) the number of lawn care service companies has increased. Every society faces economic trade-offs. b. ActivityAdmissionCleaningGroomingTotalindirectcostsEstimatedCost$60,000240,00080,000$380,000AllocationBaseNumberofadmissionsCleaningdirectlaborhoursGroomingdirectlaborhoursEstimatedQuantityofAllocationBase20,000100,0004,000. A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut. D) less than 5 times as much as your grandfather in terms of nominal income. A. The money-creating potential in the banking system is simply the amount of new money that can be created using the excess reserves of the bank. A pair of shoes that costs $80 last month costs $100 this month. B) there has been an upward movement along a demand curve. D) allocatively efficient. b. c. To be an informed citizen PDF AP Macroeconomics 2018 Free-Response Questions - College Board c. The overall price level in the economy C) There will be a decrease in the quantity of labor supplied by households. How has the discovery of oil in the Niger delta affected Nigeria's environment? D) decrease tax rates. Zero because you knew when you registered for the class that studying would be required. Which of the following is not a durable good? Q. B. MCQs on Basic Economics - GeeksforGeeks For below problem geometric sequence given write the next three terms. Given the following data, what is money creating potential in this Que10. C. Market mechanisms and lassiez faire. A) The supply curve will shift to the left. Flow (1) represents: A) wage, rent, interest, and profit income. B) Laurence rents a car to drive to a wedding in San Diego. Which of the following is not one of the three core economic issues that must be resolved? B. Expansionary fiscal policy involves C) cyclical unemployment C) The quantity of traditional camera film demanded increases. As a result, GDP ________ because ________. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. known as ___________ Mental illness is a(n)___________ concept, typically D. Allocative efficiency. You will then have 50 minutes to answer all three of the following questions. B) below the market wage, causing labor demand to be less than labor supply. A. A. Raising the income tax decreases the amount of disposable income available to those households. B) Canada's GDP. Economic growth. The minimum wage law causes unemployment. (a) Economic Activities related to Unlimited Wants (b) Economic Activities related to Limited Resources (c) Both (a) and (b) (d) None of these Answer Question 4. Individual consumers. D. None of these choices are correct. D) about the same difficulty as with monetary policy. A) the unemployment rate increased. What goods and services to produce; how will these goods and services be produced; and who receives them? Which of the following is a macroeconomics question? a. How many C) more difficult than with monetary policy. Simple economies can be described in terms of three major economic flows. D) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. 60 seconds. A) labor, capital, land and natural resources are fixed in quantity. D) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns. A. producers Which field of economics deals primarily with the problems faced by low-income countries? D) the legally determined maximum price that sellers may charge for a given quantity of a product. B) Persons who collect unemployment benefits report themselves to be searching for a job. C. choices; scarce (a). E) Discouraged workers are counted as unemployed. A) increase the measured unemployment rate. B) add to GDP. A) the Pacific Trade Association. The 1994 agreement that eliminated most tariffs among the United States, Canada, and Mexico is known as D. All of the choices are correct. C) equity D) Deadweight efficiency, When ________ in a market, the total net benefit to society is maximized. Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. The Industrial Revolution refers to the rise of the modern factory system in ________ during the late eighteenth and early nineteenth centuries. Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? Poorly timed discretionary policy can do more harm than good. C) the price of sailboats increased and the quantity of sailboats demanded decreased." B) a union contractor whose pay is adjusted based on changes in the CPI Profits are always very high and persistent B) remain the same. You have majored in computer science and, because of the recession, have difficulty in finding a job. D) will raise disposable income and raise spending. When Chuck and Marla get married, Marla continues to work on designing the home, but she no longer charges Chuck for her work. B) teachers' salaries paid by a local government All points outside the curve. The market mechanism may best be defined as All of the following events would have this effect except The key factors of microeconomics are as follows: Demand, supply, and equilibrium Production theory Costs of production Labour economics Examples: Individual demand, and price of a product. A) The demand curve for traditional camera film shifts to the right. This would Laws and regulations. Key Takeaways. 19 If the short-run aggregate supply curve intersects with the aggregate demand curve at a point that is greater than the long-run . All of the following are criteria frequently applied in judging economic outcomes except a. Which of the following statements is false? Prelims Marathon - Economic Survey - March 1st - 2023. Equity D) The purchasing power of your salary increased between 2007 and 2016. B) greater on the seller when the tax is collected from the seller. d. Congress extends the maximum duration for the collection of unemployment benefits from 26-52 weeks, T/F The collection and use of data to test economic theory is called empirical economics, To analyze the relationship between two variables while holding the values of other variables unchanged is a device known as If North Korea is currently producing at effciency, and it proceeds to increase the size of its military, then, as long as nothing else changes, its Step-by-step explanation. Answer the following questions by selecting the appropriate answer from the list below. This problem has been solved! A family's decision about how much income to save. D) risen; fallen. Assume the punctuality random variable follows a binomial distribution. C) Corporate income taxes; excise and other taxes It is also the case that reported burglaries increase during the same period. With respect to factors of production, which of the following statements is not true? C. maintain equilibrium in the Balance of Payments. If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________ D) the unemployment rate consists of only frictional and structural unemployment. C) GDP deflator A) below the market wage, causing labor demand to be greater than labor supply. B) ice cream and hot fudge and substitutes. They've told our detectives they have no interest in ever putting in the barriers.". A. Should we have economic growth? C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. d. It is an example of the fallacy of composition, The field of economics that deals primarily with the factors that determine wage rates, employment, and unemployment is called: (C) how individual markets work. A) Many full time workers really want to be part time workers. Solved Which of the following is a macroeconomics question - Chegg A. How many airlines will be late in one month? Real domestic output is at its maximum level. The best alt. A. gross earnings C) ice cream and hot fudge are normal goods. C. Opportunity cost. The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses. A) create jobs. Households and firms; the economy as a whole, T/F Resources are limited in both wealthy and poor societies, All of the following are criteria frequently applied in judging economic outcomes except, Economics is best defined as the study of, The most common method for graphing the relationship between two variables is by drawing two __________ lines, where the __________ is a horizontal line and the __________ is a vertical line. D) Unlike positive economic analysis, normative economic analysis can be tested. Macroeconomics is focused on the movement and trends in the economy as a whole. It is the field of economics that studies the behavior of the entire economy. As more and more time is spent on one activity, the opportunity cost of that activity in terms of other activities falls Is a normative analysis The four basic economic questions are: what goods to produce, how to use resources in the production process, who receives the finished goods and when to produce the goods. A. negative because it may improve your grade. Is the value of the alternative use of the time you spend of playing this game C) the value of the house in 2016 minus depreciation What goods and services to producehow will these goods and services be produced; and who receives them? E. consumers and producers. B) there is a one-time increase in the price level. B) decrease the measured labor force participation rate. A) technological advancement in the production of electric car batteries. D. the choices people make to attain their goals, given their scarce resources. The third equation represents the investment function, where e and k are parameters. The three fundamental questions that any economy must address are What Are the Four Basic Economic Questions? - Reference.com Which of the following can be used to correct market failure? C. All points inside the curve. B) German GDP. Macroeconomics MCQ: Multiple Choice Questions Solve the Following Short-Essay Questions: Define demand. c. As less and less time is spent on one activity, the opportunity cost of that activity in terms of other activities rises Technological advancements have led to lower prices and an increase in the sale of color laser printers. Holding everything else constant, how would this affect the market for video game consoles (a complement to LCD televisions)? A) a reduction in unemployment. A) the free market. 1. C) Japanese firms benefited from external economies. C. marginal revenue D) consumer price index. c. Labor economics National income is equal to D) unemployed persons falsely report themselves to be actively looking for a job. Step-by-step explanation. Which of the following would be included in the gross domestic product for 2016? An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. Show more. c. determine the objective. D. what will be produced; how something will be produced; ________ is a situation in which a good or service is produced at the lowest possible cost. A) welfare benefits D. Scarcity. C) implementing an unemployment insurance policy Scarce resources and opportunity cost. True 3Government fixes the floor and ceiling . a. E) the cost of tuition and fees only. A) greater on the buyer when the tax is collected from the buyer. What factors determine the price of carrots? It allows researchers to isolate the effect of one event on another without the influence of outside variables Which of the following is not a microeconomics topic? (Select all that