Deck 23: 0: Sec 230 Mc Measuring a Nations Income

Question 1

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.

Answer 1

B

Question 2

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.

Answer 2

B

Question 3

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

Answer 3

C

Question 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

Question 5

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?

Question 6

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.