e. variable cost reduction. The "guns versus butter" dilemma that all nations confront is that Principles of Macroeconomics Quiz- Which of the following represents the major functions of the central bank (a) note issuing agency (b) controller of. D) Unlike positive economic analysis, normative economic analysis can be tested. You earned $30,000 in 2007, and your salary rose to $80,000 in 2016. B) lower government purchases by $200 billion. C) lower; higher (a). B) productive efficiency C) the loss of economic surplus when the marginal benefit equals the marginal cost of the last unit produced. a. Works through central planning by government. Key Takeaways. Question: Which of the following is an illustration of a macroeconomic question? A) taxes; interest rates The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill A. gross earnings A) the value of the house in 2016 C) the demand curve shifted to the right resulting in an increase in the equilibrium price. C.. A. B) increased income tax rates. In the long run, most economists agree that a permanent increase in government spending leads to ________ crowding out of private spending B) far less difficult than with monetary policy. A) decreased government regulations on businesses. D. The person who has the responsibility to coordinate all the markets in a market economy. Check your understanding of civil commitment by filling B) the underground economy. C. How is the production quantity of snowboards determined? O How will the government's budget deficit be affected by public infrastructure projects? It focuses on areas like inflation, economic growth rate, price levels of various goods and services, gross domestic product (GDP), national income and the unemployment rate in a particular country. When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it, ________ occurs D) an increase in the labor force. Which of the following explains why many European countries have unemployment rates that are higher than in the United States? C) below; surplus Investment, as defined by economists, would not include which of the following? A) the Income Security Tax. B) a union contractor whose pay is adjusted based on changes in the CPI Question: Which of the following is an example of a macroeconomic question? First, the poor tend to hold most of their financial assets in the form of cash rather than in interest-bearing assets. A. the same weight of goods has been imported as were exported. To Liza, The difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by _________, while macroeconomics deals primarily with _____________. D) the value of the services of the real estate agent, Which of the following goods is directly counted in GDP? c. Opportunity costs are zero A) U.S. GNP. When the laws about civil commitment emerged, Poorly timed discretionary policy can do more harm than good. D) GNP plus depreciation. How can a firm maximize profits, given the state of the economy? A. Step-by-step explanation. C) Their value is counted separately, but is not included as part of the value of the final good for which they are an input. B) those that lend money lose. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Macroeconomics, as opposed to microeconomics, includes the study of what determines the ____________ c. It eliminates the need for abstraction or simplification B. C. unlimited resources exceed limited wants. b. National income is equal to D. the government, consumers, and producers In a market economy, the people who receive the goods and services that are produced are those who Classify the following topics as relating to microeconomics or macroeconomics. D) Your father buys a new John Deere riding lawn mower. BOOK Market Leader intermediate 3rd edition. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. D) a bridge purchased by the state government. They are both automatically achieved in a free market economy. a. The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. D) there is a decrease in the expected rate of inflation. Microeconomics is concerned with issues such as In this initiative, you can attempt 10 subjective MCQs on a daily basis. D. marginal costs A) -9.5% A) change; overestimates A) The federal government buys a Humvee. D. Is one that allows trade with other countries. d. Everyone always gets what they want, T/F Macroeconomics deal with the function of individual industries and the behavior of firms and households, All of the following are examples of topics examined in macroeconomics except D. workers deciding to produce only what the boss says must be produced. P = $80 In perfect competition, P = AR = A) higher; higher Both discretionary fiscal policy and monetary policy are instruments that governments employ to control the economy. A) labor, capital, land and natural resources are fixed in quantity. Raising the income tax decreases the amount of disposable income available to those households. In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments. According to a deputy commissioner of police, "Commerce does very little of what we recommend. D) only change GDP if the development occurs within the borders of the United States. Step-by-step explanation. C. Lassiez faire price policies. C) Japanese firms benefited from external economies. a. C. A centrally planned economy It is an example of the post hoc fallacy B) Persons who collect unemployment benefits report themselves to be searching for a job. Economic development The equilibrium aggregate price level and level of aggregate output occur when. Which of the following statements uses the concept of equity to argue against the legalization of casino gambling? . What factor was most responsible for the development of Japan's comparative advantage in automobiles? The Government will decrease spending by $20 million and increase taxes by $15 million. D) The minimum wage in Europe is lower than it is in the United States. D) unemployed persons falsely report themselves to be actively looking for a job. D) All of the above will occur. An undesirable combination of goods and services. Which one of the following is the objective of fiscal policy? Macroeconomics Basics. a. D) decreases; decreases. Every society faces economic tradeoffs. D) the same whether the tax is collected from the buyer or the seller. This situation will most likely coincide with high unemployment. D) GDP is adjusted for increases in drug addiction. b. A. B) the value of the time spent on line. D) automatic monetary policy, Since the Social Security system began in 1935, the number of workers per retiree has __________ C. Maximum combinations of goods and services an economy can produce given unlimited resources. Which of the following is a macroeconomic question? d. Eliminating the trade embargo with Cuba would increase the number of Cuban cigars available in the United States The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. B) partial B. PetSmart even offers a Top Dog service that includes a premium shampoo, milk bath conditioner, scented cologne spritz, teeth brushing, and a bandana or bow. B) higher; lower The size of the underground economy would tend to decrease if the government of a country __________________ The market mechanism. It is the field of economics that studies the behavior of the entire economy. Intervention in the economy by the government bureaucrats we do not see and over whom we have no control. C. The allocation of resources by market forces. A) Yes, the recession will ensure that you will never find a job as a programmer. The conclusion of this statement: B. In terms of the production possibilities curve, inefficiency is represented by C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut. Microeconomics is the study of C) cyclical unemployment What were the macroeconomic principles or models that influenced your decision making?] Markets are likely to do a better job of allocating resources than government directives. d. Public economics. Microeconomics questions and answers Refer to the following graphs to answer the question below. Answer: B Diff: 1 Page Ref: 12/12 Topic: Economic Models *: Recurring Maximum combinations of goods and services an economy can produce given its available resources and technology. Solve homework. A) an increase in demand. Macroeconomics Multiple Choice Questions 1. D) do not change; underestimates. D) technology. c. Walmart announced that it will increase its starting wage for employees to $10/hour by Feb 2016 Macroeconomics is the branch of economics that deals with: (A) the prices of individual goods. A. producing more of one good means less of another good can be produced. C. Maintaining a strong level of economic growth. You know that average prices have risen steadily since 1961. How should we produce goods and services? C. Inefficient incentives. (b). b. Caveat emptor C) the value of the addition to the capital stock. D. all of the above Answer: D.all of the above 2. C) decrease oil prices. given up when we make a decision is called ____ of that decision Advertisement Advertisement D) a decrease in oil prices, The aggregate demand curve will shift to the left ________ the initial decrease in government purchases. C) decrease. B) ice cream and hot fudge and substitutes. The president has proposed increasing the marginal tax rate for people whose annual earnings exceed $275,000 and lowering the marginal tax rate for those who earn less than $275,000 MULTIPLE CHOICE QUESTIONS TESTBANK - CHAPTER 3. In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. C) an increase in the quantity supplied. A) employed (a) Unlimited Wants Changes in the aggregate price level (inflation) The phrase "demand has increased" means that ___________ a. A) less difficult than with monetary policy. All of the above. C) shift of the demand curve due to a change in purchasing power brought about by the price change. D. All of the choices are correct. A) inflation. B) automobile C) less than 5 times as much as your grandfather in terms of real income. C) decrease the number of persons in the labor force. A) Starbucks purchases coffee beans. D) incorporates substitutions by consumers when prices of specific products fall rapidly. B) relative abundance of labor and capital. 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 The demand for bottled water by individuals. For below problem geometric sequence given write the next three terms. D) The "Lucky Ducky" casino buys a new crabs table for the casino floor. The price of steel declined by 3% last year. It considers discouraged workers, and hence it is overstated. b. Economics is the study of the ________ people make to attain their goals, given their________ resources. Total the statement columns, compute net income (loss), and complete work sheet. B) The demand for video game consoles would decrease and the equilibrium price of video game consoles would decrease. This change will______________ d. The unemployment rate, Does the "richest man in the world" face scarcity, or does scarcity only affect those with more limited incomes and lower net worth? A. (b) the level of aggregate demand determines production, employment,. B) Yes, the recession will lower income in my field permanently. We can conclude, therefore, that increased ice cream sales cause an increase in burglaries." B) an expansionary; a contractionary E. consumers and firms choosing which goods and services to buy or produce. D) a contractionary; an expansionary. ; D. what will be produced; how something will be produced. The correct answer is C. Explanation: Macroeconomics tries to know and measure an economy goes, how well it is performing. (b) 81,54,36,81,54,36, \ldots81,54,36,. D) The quantity of inkjet printers demanded decreases, Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. The real rate of interest is ______________ B) an increase in quantity demanded. C) an autonomous; an induced a. B) GDP is not adjusted for pollution. ___________ (movement of disabled individuals out There are no problems and everyone, including consumers, is satisfied. Question: Question 21 Which of the following exemplifies a macroeconomic question? Therefore, exercising daily causes people to eat kale. (Round percentages to one decimal place.). B. d. Why do some countries grow faster than others? D) the level of technology is fixed and unchanging. B) government spending and taxes that automatically increase or decrease along with the business cycle. Technological progress has made it possible for firms such as Apple and Alivecor to develop small electronic devices, including smartwatches, smartphones, and products that can be attached to the smartwatches and smartphones, to serve consumers who have become more health conscious and wish to monitor various health conditions. Why is the typical person in the United States today more than 10 times richer than the typical person in the United States a century ago? [Questions] Mains Marathon I Daily Answer Writing I Feb 28th, 2023. A. The 1994 agreement that eliminated most tariffs among the United States, Canada, and Mexico is known as A) the law of supply has been violated. Stability c. Efficiency d. Growth A Economics is best defined as the study of a. Step-by-step explanation. C) GDP rises by $125. Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes? The economic term for the costs associated with negotiating and enforcing a contract is a. opportunity costs. a. occurred. All of these O b. Scarce resources and opportunity cost. B) adds 1,000 new cars to inventories. D) no one in the economy loses. You . A production possibilities curve indicates the View Answer. Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness? B-Postive C) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. 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 _______________ B. decisions; household Question: Which of the following is a macroeconomics question? An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. A) the money supply and a decrease in interest rates. d. C) more difficult than with monetary policy. D. give more money to the government to solve its problems. ________ and ________ are the largest sources of revenue collected by the federal government It is an example of the coincidental fallacy If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest? As a result, _____________ _____a. A. Question 1. B) updates the market basket every 10 years, rather than every two years. Which of the following individuals would be most negatively affected by anticipated inflation? C) risen; risen To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1). A) real GDP A. B) change; underestimates To find the parametric solutions for the predicted GDP (Y) and the predicted investment (I), we can substitute the second equation into the first equation: Y = a + b (Y - T0) + e + kY + G0. Posted on February 28th, 2023 Last modified on February 28th, 2023 Comments. Capital, as economists use the term, refers to. Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. These are: A. income, spending and saving. If inflation is positive and is perfectly anticipated ____________ d. sensitivity analysis. D. People should not buy imported fruits and vegetables. C) the business cycle. C) legalized prostitution. A. Economists have shown that the burden of a tax is 60 seconds. On which base structure of economic problems has been installed? D) ceteris paribus. B. C. Optimal marginalism C) Yvette pays $50 to join a softball league. A) fallen; fallen B) protect the environment. Determine the following. D. What goods and services should we produce? D) efficient central planning. Have the most political power. B. the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. b. A) increase the measured unemployment rate. Cutting taxes _______ C. maintain equilibrium in the Balance of Payments. A. A) decrease the measured unemployment rate. . O a False O b. Which of the following would be the best measure of the cost of living? D) both U.S. GNP and German GDP. B) the value of all cars produced by Ford in Mexico The market mechanism at work. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. A) below the market wage, causing labor demand to be greater than labor supply. Keynesian economics says that: (a) workers are paid for their ability to work, not for the value of what their labor creates. D) Deadweight efficiency, When ________ in a market, the total net benefit to society is maximized. Explore the definition and types of economics including microeconomics and macroeconomics and. A. central bank prints more money B. increase in household savings C. decrease in borrowing by private firms D. foreign financial investors B) The supply curve will shift to the right. A) Japanese firms excelled in process technology. A) the value of all cars produced by General Motors in the United States Which assumptions do you need to make in order to be correct in considering a binomial distribution for your variable? B) the equilibrium quantity of sailboats increased." E. pure profit. B) the economy produces only two products. C) an increase in taxes A. how households and firms make choices. Administrativeexpenses. Totaloperatingexpenses Incomefromoperations. Otherincome.. Incomebeforeincometax.. Incometaxexpense.. Netincome. David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Intro to Microeconomics (First Exam) (Chapter, Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Should you go back to school and get a second major? B) the price level in 2016 was less than the price level in the base year. The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2013 and 2014. a. A lassiez faire approach will reduce the level of pollution. there is a current account deficit. D) producer surplus is minimized. The invisible hand refers to The economy has gone into a recession. Upon your graduation from college, you find that the economy is in recession and the unemployment rate is relatively high. Explain the pitfall of this statement. C) increased income tax rates. Is not a very efficient means of communicating consumer demand to the producers of goods and services. The higher price caused the supply of sailboats to increase.". C) decrease the number of persons in the labor force. C) the ups and downs in inflation. in the blanks. of disabled individuals to a less restrictive facility) also B) taxes; the money supply 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 ________ A) Economic efficiency A production possibilities frontier with a bowed-outward shape indicates A. increasing opportunity costs as more and more of one good is produced. Which of the following is a macroeconomics question? The police were surprised the bank did not take their advice. Aggregate unemployment C) the demand for lawn care service has decreased. Greater production means factor prices rise. Q: Choose the statement that does not describe Microeconomics. B) $60. D) What determines the level of U.S. imports and exports? C) decrease in demand; decrease in quantity demanded d. Cannot be calculated, T/F The phrase "there's no such thing as a free lunch" is a common way of expressing the concept of efficient markets, "Statistics tell us that ice cream sales increase during the summer months. C) a tank purchased by the federal government Bill Gates does not face scarcity because he is a billionaire B) remain the same. All points outside the curve. A: Macroeconomics is that branch of economics in which we study the economic problem and issues at a. d. B) in non-licensed shops and warehouses. D) quantity of Dell employees. D) the decline in the value of the stock market, net of dividends. B. C. Want the goods and services the most. In the past two decades the United States lost its comparative advantage in automobiles to Japan. CONCEPT Equilibrium The government will probably implement expansionary macroeconomic policies. Scarcity refers to the situation in which. although this definition differs from state to state. B. D. Scarcity. A. income; available A. C) the value of the house in 2016 minus depreciation d. To learn how to make lots of money, Explain whether each of the following is an example of a macro or micro concern D) equal 20%. The impact of crowding out may be the least _____________ A) updates the market basket every two years, rather than every 10 years. The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of A) -3%. C) during an expansion. D. Al of the choices are correct. International economics. What goods and services to produce; how will these goods and services be produced; and who receives them? B) teachers' salaries paid by a local government C) What factors determine the price of Oreo cookies? 1. A) frictional unemployment Preparation and presentation of Budget for state governments under President's Rule 3. Select one: a. Choices made by people faced with scarcity b. The production possibilities curve illustrates which two of the following essential principles? The income effect of a price change results in a _________ With respect to factors of production, which of the following statements is not true? D) 15%. C. Greater production of one good requires increasingly larger sacrifices of other goods. Economists reason that the optimal decision is to continue any activity up to the point where the. A technological advance would best be represented by A mixed economy B. A) take away from GDP. D) a slowdown in the economy. A. B) more than 5 times as much as your grandfather in terms of real income. Que10. C) entrepreneurship. How were consumption and investment affected . A) stayed roughly the same. Is way of analyzing decision-making processes caused by scarcity C) raise taxes by $200 billion. D. Average combinations of goods and services an economy can produce given its available resources and technology. b. B. D) ice cream is a normal good and hot fudge is an inferior good. Is the value of the alternative use of the time you spend of playing this game D. The best alternative use of your time. Which of the following transactions would be recorded in the French current account of its balance of payments statistics? C) gross domestic product of the United States. B. microeconomics. A. d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer. A) automatic stabilizers; discretionary fiscal policy Which of the following can be used to correct market failure? ________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production. The minimum wage law causes unemployment. When graphing two variables, the point at which the graph intersects the horizontal axis is called the, T/F Opportunity costs are another name for marginal costs.

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