11.1 The “Flip” Sides of Macroeconomic Activity: Production and Income
1) Macroeconomics differs from microeconomics in that
A) macroeconomics is the study of individual markets, while microeconomics deals with the nation’s economy as a whole.
B) microeconomics is the study of individual markets, while macroeconomics deals with the nation’s economy as a whole.
C) macroeconomics focuses principally on social and political issues, while microeconomics involves the study of a nation’s monetary system.
D) microeconomics focuses principally on social and political issues, while macroeconomics involves the study of a nation’s monetary system.
2) Which of the following would be a macroeconomic question?
A) How have the retirement benefits in the auto industry changed over time?
B) How has inflation increased over time?
C) How has the price of gold increased over time?
D) How has the number of commercial airline flights decreased over time?
3) Which of the following is a macroeconomic statement?
A) Motorcycle manufacturer productivity decreased by 3% in 2012.
B) The price of cell phones decreased by 18% last year.
C) Real domestic output of seafood increased 12% from 2011 to 2012.
D) The U.S. inflation rate was 2% in 2012.
4) Which of the following is NOT a macroeconomic statement?
A) Aggregate worker productivity decreased by 3% in 2012.
B) The price of cell phones decreased by 18% last year.
C) Gross domestic product in Peru increased 4% from 2011 to 2012.
D) The U.S. inflation rate was 2% in 2012.
5) Macroeconomics
A) studies the behavior of individual consumers, firms and markets.
B) studies the behavior of the economy as a whole.
C) involves the interaction between different countries in specific markets.
D) studies how computer automation has changed economics.
6) Fluctuations in economic performance is one of the two basic issues of macroeconomics. The other is
A) tracking unemployment.
B) keeping interest rates in check.
C) long-run economic growth.
D) monitoring inflation rates.
7) What are the two critical measures of a nation’s economic health?
A) income and spending
B) sales and taxes
C) wages and raises
D) production and income
8) The circular flow is used to make the point that
A) rising prices never occur during times of unemployment.
B) unemployment only occurs during a recession.
C) production generates income.
D) households purchase factors of production from firms.
9) As depicted in the circular flow diagram, firms
A) demand the goods and services that households supply in product markets.
B) supply the goods and services that households demand in product markets.
C) demand the resources that households supply in product markets.
D) supply the resources that households demand in factor markets.
10) Macroeconomics is the study of individual economic markets.