b. B. C) the ACIF. Which of the following is a positive economic statement? A) the unemployment rate increased. An outward shift of a nation's production possibilities frontier can occur due to Th View the full answer D. Are willing to pay the highest price. Given the following data, what is money creating potential in this C. do have an economic problem but are solving it. A. B) What determines the production of video game consoles? A production possibilities curve indicates the How much will be saved; what will be produced; and how can these goods and services be fairly distributed? D. People begin to retire at earlier ages. Where in Oceania are outrigger canoes used? Which of the following is a macroeconomic question? B) when real GDP is above but close to potential GDP. What is the current national rate of unemployment? C) falls; Marla's architectural design services are no longer bought by Chuck once they're married A decrease in input costs in the production of LCD televisions caused the price of LCD televisions to decrease. B. a. A) less difficult than with monetary policy. 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 . Full employment is not considered to be zero unemployment, because For his wife's birthday, he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete. A formal statement of theory, usually a mathematical statement of a presumed relationship between two or more variables, is called ______. Classify the following topics as relating to microeconomics or macroeconomics. D. None of these choices are correct. B) the value of the house in 2003 B) The demand curve for inkjet printers shifts to the left. The doctrine of lassiez faire is based on the belief that A) during a deep recession. All points on the curve. A) an increase in the minimum wage 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. C) by the same amount as D) will raise disposable income and raise spending. b. 300+ TOP Macroeconomics MCQs and Answers Quiz Exam A) ice cream and hot fudge are complements. A. Mike has been unemployed for over a year. a. the government The minimum wage law causes unemployment. C) productively efficient A) falls; Marla's work takes place in the underground economy once she's married Government failure. To understand society and global affairs If a minimum wage of $15 per hour is imposed, which of the following will occur? With respect to factors of production, which of the following statements is not true? B. the possibility of inefficient production. C) Firms in European countries offer employees higher wages and higher benefits than do firms in the United States. C. the highest valued alternative that must be given up to engage in an activity. Producers are using inventory faster than it can be replaced. C) a full-time employee at a pizza parlor who makes more than the minimum wage B) The tax cut would increase consumption spending more than would a permanent tax cut. Have the most political power. D) risen; fallen. C) a change in the amounts of one good desired. A) U.S. GNP. b. C) ensure safe imports. 60 seconds. 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 C) changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives. A) Tuan purchases a cappuccino at the student union. Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. D) the Western Trade Union. a. C. consumers (b) 81,54,36,81,54,36, \ldots81,54,36,. A) an induced; an autonomous Que11. c. Walmart announced that it will increase its starting wage for employees to $10/hour by Feb 2016 A. Determine whether the following question is related to microeconomics or macroeconomics: "Should I go to grad school or take a job?" What are some important facts regarding macroeconomics? Question 1. C) the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future. Macroeconomics is focused on the movement and trends in the economy as a whole. Based on this evidence, Tecumseh has experienced c. As less and less time is spent on one activity, the opportunity cost of that activity in terms of other activities rises Which of the following is not one of the three core economic issues that must be resolved? ; D. what will be produced; how something will be produced. The use of market signals and government directives to select economic outcomes. a. Microeconomics C) a decrease in the unemployment rate C) A state government cuts taxes to help the economy of the state. A) average price levels of goods and services in the economy. D) the decline in the value of the stock market, net of dividends. If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, economists would describe this as_______ D. give more money to the government to solve its problems. B. stabilize the price level. Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" b. Reading Period 10 minutes . All of the following are sources of comparative advantage except D) GDP falls by $1,875. You have majored in computer science and, because of the recession, have difficulty in finding a job. B) Marginal benefit is the additional benefit to a consumer from consuming one more unit of a product. C) an increase in unemployment insurance payments C) disposable personal income plus depreciation plus personal taxes. The police were surprised the bank did not take their advice. Which of the following is not a basic decision that all nations must confront? Commits the fallacy of composition Economics teaches how to limit our wants. 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. How consumers make purchasing decisions c. Inflation, unemployment, and economic growth d. Final decision making A C) 1.5% A. producing more of one good means less of another good can be produced. O How will the government's budget deficit be affected by public infrastructure projects? D) the level of technology is fixed and unchanging. there is a current account deficit. 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. A. B) The purchasing power of your salary fell between 2007 and 2016. C) an increase in the quantity supplied. Microeconomics answers - Math Methods Which of the following is a microeconomics question? In 2015, the U.S. auto industry experienced rising sales. of disabled individuals to a less restrictive facility) also View Answer The key. A) employed Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. A) increase. C) risen; risen C) automatic stabilizers; monetary policy For below problem geometric sequence given write the next three terms. A. C) there is a decline in the price level. Profits are always very high and persistent In a market economy, who decides what goods and services will be produced? B) will raise disposable income and lower spending. C. There is often a tradeoff between the two. They always call for opposite outcomes. D. workers deciding to produce only what the boss says must be produced. 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. In addition to selling pet food and pet products, PetSmart also offers dog grooming services including baths, nail trimming, teeth brushing, and aromatherapy to reduce everyday stress, and nail polish and stickers. Macroeconomics Questions and Answers | Homework.Study.com ActivityAdmissionCleaningGroomingTotalindirectcostsEstimatedCost$60,000240,00080,000$380,000AllocationBaseNumberofadmissionsCleaningdirectlaborhoursGroomingdirectlaborhoursEstimatedQuantityofAllocationBase20,000100,0004,000. B) protect the environment. Macroeconomics (ECON 202) Assignment-No.3 Short answer questions Answer the following with the use of the relevant equations which must be shown. a. 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. c. It eliminates the need for abstraction or simplification \text{Grooming}&\text{\underline{\hspace{15pt}80,000}}\hspace{10pt}&\text{Grooming direct labor hours}&\text{\hspace{10pt}4,000}\\ E) States increase taxes to fund education. P = $80 In perfect competition, P = AR = C. The government should subsidize solar power for homeowners. (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. During a business cycle expansion, total production ________ and total employment ________. Explain. B) unemployed A) climate and natural resources. D. Works because prices serve as a means of communication between consumers and producers. What goods and services to produce; how will these goods and services be produced; and who receives them? 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: A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. The money-creating potential in the banking system in the given case is computed as follows: Macroeconomics Problems | Interest Rate Inflation & Unemployment - EDUCBA B) productive efficiency 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? A. producers (b). A. c. Industrial organization D) Lily purchases a new massage table for use in her therapy center. A) inflation. A) those that borrow money lose. A. The income effect of a price change results in a _________ D) Deadweight efficiency, When ________ in a market, the total net benefit to society is maximized. C) people employed in the underground economy A) total employment is greater. O a. d. Ceteris paribus, Which of the following is not an opportunity cost of attending college? B. the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) there has been an upward movement along a demand curve. The phrase "demand has increased" means that ___________ B) falls; Marla's work becomes less valuable once she's married The marginal propensity to consume (MPC . D) the demand curve shifted to the left resulting in a decrease in the equilibrium price. If inflation over the year is 2%, what is the real interest rate you are paying? C) NAFTA. D) out of the labor force. C) the sum of frictional unemployment and structural unemployment equals zero. a. B) by more than D. the choices people make to attain their goals, given their scarce resources. A) some cyclical unemployment always exists. d. Is concerned with proving that capitalism is better than socialism, An efficient market is a market which b. Q. C. decreasing opportunity costs as more and more of one good is produced. A. 1 #7. occurred. Which of the following individuals would be most negatively affected by anticipated inflation? An increase in ____________ A) the opportunity cost to firms from producing the equilibrium quantity in a competitive market. A) a decrease in the money supply and an increase in the interest rate D) No, the recession will have no impact on my ability to get a job or my future income. Economists have shown that the burden of a tax is b. consumers B) increase in demand; increase in quantity demanded Adam Smith's invisible hand is now called D) all of the above. Both discretionary fiscal policy and monetary policy are instruments that governments employ to control the economy. D. Economic growth and market failure. B. B) Trade Without Borders. A) There will be an increase in unemployment. Technological advancements have led to lower prices and an increase in the sale of color laser printers. b. b. Capital, as economists use the term, refers to. D) increase all of the monetary flows. B) a decrease in government purchases The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses. b. D. macroeconomics. The Federal Reserve lowered interest rates at its last meeting. The third equation represents the investment function, where e and k are parameters. D) decreases; decreases. According to a deputy commissioner of police, "Commerce does very little of what we recommend. Market failure. In this initiative, you can attempt 10 subjective MCQs on a daily basis. ECO 210 Ch.1 Flashcards | Quizlet Annes Newton - G00378073- ECON QUIZ 2. The difference between microeconomics and macroeconomics is that microeconomics analyzes the decisions made by _________, while macroeconomics deals primarily with _____________. D) do not change; underestimates. Individual consumers. Your grandfather tells you that he earned $7,000/year in his first job in 1961. c. The alternative uses of time you spend studying E) 9.5%. C. The allocation of resources by market forces. B. d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer. A) the Pacific Trade Association. answer choices. a. margin of safety. Answering these four questions is essential for an economy to function properly. B) more than 5 times as much as your grandfather in terms of real income. e. variable cost reduction. The tuition you pay ECO111 Quizz 01 FALL 2021. C) decrease; more D) Japan has abundant supplies of natural resources needed to produce automobiles. A) the value of output in 2015 was around $17.3 trillion. To learn a way of thinking Voluntary exchange C) not change GDP. A) decrease the measured unemployment rate. One can conclude that If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would ________ d. National output, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Alexander Holmes, Barbara Illowsky, Susan Dean. Given this information, we know for certain that ________ (d). B. c. functional costs. there is a current account surplus. A. producing more of one good means less of another good can be produced. C) the unemployment rate decreased. D) both U.S. GNP and German GDP. B) substitution C) Corporate income taxes; excise and other taxes Determine the following. B. Zero because you knew when you registered for the class that studying would be required. C) complete c. It confuses correlation and causation (C) how individual markets work. 3. In the following macroeconomic system, find the parametric B) government purchases. B) discretionary fiscal policy; automatic stabilizers According to the text, economists consider full employment to occur when a. The unemployment rate for the United States rose to 5 percent in the last quarter. D) building an online job database that helps workers find jobs. A. C.. E) too low. If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is a. D) an increase in consumers' taste for coffee. All of these O b. A) -9.5% d. It allows researcher to analyze the effect of all potential influences on a particular event, Which of the following is not listed in the book as a reason to study economics? C. Maximum combinations of goods and services an economy can produce given unlimited resources. Use the supply schedule below to answer the following question: Price $10 $20 Quantity Supplied 100 This problem has been solved! Macroeconomic Questions Flashcards | Quizlet b. PDF Questions and Answers - Damanhour C. Macroeconomic failure. [Identify the impact of your changes to the income and corporate tax rates. B) updates the market basket every 10 years, rather than every two years. A) -3%. the person is unable to care for himself or herself, also D) the unemployment rate consists of only frictional and structural unemployment. C) less than 5 times as much as your grandfather in terms of real income. A. producing more of one good means less of another good can be produced. C. The overall economy. The size of the underground economy would tend to decrease if the government of a country __________________ Which of the following would reduce the labor force participation rate, all else equal? B. net benefit B) European countries offer higher unemployment benefits than the United States. A) U.S. GDP. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. B. A) there is a sustained increase in the price level. Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________. a. The production possibilities curve between tanks and automobiles will appear as a straight line. What Are the Four Basic Economic Questions? - Reference.com Maximum combinations of goods and services an economy can produce given its available resources and technology. Need the goods and services the most. There is full employment. A) frictional unemployment D) A drug dealer reports herself as unemployed. C) a strong foreign currency exchange rate. Because Mike started looking for a new job ______________ A) The federal government passes tax cuts to encourage firms to reduce air pollution. A) 5 times as much as your grandfather in terms of real income. ___________ (movement of disabled individuals out A) 2% Microeconomics is the study of B) ice cream and hot fudge and substitutes. Suppose in 2016, you purchase a house built in 2003. Writing Period 50 minutes . b. It is an example of the coincidental fallacy Use the following (partial) chart of accountsaccount numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696). Choices made by people faced with scarcity b. C. when something will be produced; why something will be produced d. B and C only, T/F On a time series graph, time is measured along the vertical scale, People who eat kale on a regular basis are more likely to exercise every day than people who do not eat kale. Marco's consumer surplus from the purchase is A) lower government purchases by an amount less than $200 billion. A) an increase in the number of people in the labor force A. unlimited wants exceed limited resources. Rational cost d. All of the above C) investment; consumption A) the cost of additional education is always higher during recession. B. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. B. Compared to their pre-trade positions, trade makes both countries better off because in each country The invisible hand at work. A) Technological change occurs at a faster rate in Europe, so structural unemployment is higher in Europe. D) consumer price index. B) the economy produces only two products. C) looking for work is your only option. C. There is often a tradeoff between the two. ECON303exam3chp8 Flashcards by Mengna Chen | Brainscape Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. B) a competitive equilibrium is achieved C) decreases; increases E) Discouraged workers are counted as unemployed. B-Postive D) Brazil's GNP. An undesirable combination of goods and services. B. A) automatic stabilizers; discretionary fiscal policy True 3Government fixes the floor and ceiling . a. Your survey tells you that, out of 15 airlines, 80% of them are likely to be late at least once a month. Macroeconomics focuses on the performance of Which of the following is a macroeconomic question? A. How can a firm c. producers Choose 1 answer: Hors many smartphones should Samsung produce this quarter? C) demographics Prelims Marathon - Economic Survey - February 28th - 2023. C) The demand for video game consoles would decrease because consumers could afford to buy fewer LCD televisions and video game consoles. B) There will be an increase in the quantity of labor demanded by firms. D. People should not buy imported fruits and vegetables. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. Consumption of cigarettes. C) continually declined. Is the cerebellum responsible for facilitating declarative memories of emotionally stressful events? D) less than 5 times as much as your grandfather in terms of nominal income. D. A movement from the production possibilities curve to a point inside the production possibilities curve. Aggregate unemployment Preparation and presentation of Budget for state governments under President's Rule 3. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. D) there is a decrease in the expected rate of inflation. D) about the same difficulty as with monetary policy. A) real GDP This situation will most likely coincide with high unemployment. Select one: a. C) Discouraged workers are not counted as unemployed. B) $60. The size of the underground economy would tend to increase if the government of a country ________________ The real rate of interest is ______________ D) an increase in oil prices. On which base structure of economic problems has been installed? If a firm expects that the price of its product will be lower in the future than it is today b. D) 5%. In a market economy, the people who receive the goods and services that are produced are those who Which of the following transactions represents the purchase of a final good? The term economic system refers to the way in which a society organizes the production and distribution of good and services. PetSmart, Inc. is a large specialty pet retailer of services and solutions for the needs of pets. C) opportunity A black market is a market where buying and selling take place C) The purchasing power of your salary remained constant between 2007 and 2016. How does this affect the market for traditional inkjet printers? Posted on March 1st, 2023 Last modified on March 1st, 2023 Comments. d. A) change; overestimates MACROECONOMICS FREE-RESPONSE QUESTIONS MACROECONOMICS Section II Total Time1 hour . C. Market mechanisms and lassiez faire. _____a. A) Governments interfere with the market mechanism to influence the allocation of goods and services. Chapter 6, P R O B L E M S E T 3 . Bureaucratic delays c. To be an informed citizen Why does a firm decide to enter a particular market? D) GNP plus depreciation. A. why something will be producedwhat will be produced If the ________ cost of production for two goods is different between two countries then mutually beneficial trade is possible. Macroeconomic quiz with answers | Math Tutor - jm49.toastenoteca.com C) the ups and downs in inflation. C) greater on the buyer when the tax is collected from the seller and greater on the seller when the tax is collected from the buyer. c. The overall price level in the economy C. Lassiez faire price policies. 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? A) take away from GDP. The level of inflation in the economy. D. Government failure. Microeconomics is the study of a single unit or a single firm whereas the macroeconomics is.. (a). (a). is considered___________ to herself or others, and Explanation: Macroeconomics deals with the economy as a whole. A. Which of the following best defines economics? = 8.8 - 1.2 F,, + 1.6 FGpp + 6 E (RSP500. E. consumers and firms choosing which goods and services to buy or produce. Holding everything else constant, how would this affect the market for video game consoles (a complement to LCD televisions)? If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true? B. decisions; household The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket B. How were consumption and investment affected . What factors determine the price of carrots? D) 3.5% C) a decrease in the price of lithium, which is used in the electric car batteries. A) Anytime you have to decide which action to take you are facing an economic trade-off. A) decreased government regulations on businesses. a. Economists reason that the optimal decision is to continue any activity up to the point where the. D) decrease; less. The Industrial Revolution refers to the rise of the modern factory system in ________ during the late eighteenth and early nineteenth centuries. C. All points inside the curve. The correct answer is C. Explanation: Macroeconomics tries to know and measure an economy goes, how well it is performing. B) high unemployment rates do not usually last for very long. The best alt. B) the equilibrium quantity of sailboats increased." A) decreased government regulations on businesses. Show more. Economic growth. A) a decrease in supply. B) Persons who collect unemployment benefits report themselves to be searching for a job. The production possibilities curve between tanks and automobiles will shift outward.