APPLIED ECONOMICS
TEST 1. Classify the following topics as relating to
microeconomics or macroeconomics. Write MACRO if
the topic relates to Macroeconomics; MICRO if the topic
relates to Microeconomics.
1. a family’s decision about how much income to
save
2. the effect of government regulations on auto
emissions
3. the impact of higher national saving on
economic growth
4. a firm’s decision about how many workers to hire
5. the relationship between the inflation rate and
changes in the quantity of money
TEST 2. Classify the following questions as relating to
microeconomics or macroeconomics. Write MACRO if
the question relates to Macroeconomics; MICRO if the
question relates to Microeconomics
1. What determines the level of economic activity
in a society?
2. What determines how many goods and services
a nation actually produces?
3. What determines how households and
individuals spend their budgets?
4. What determines how many jobs are available
in an economy?
5. What combination of goods and services will
best fit their needs and wants, given the budget they
have to spend?
APPLIED ECONOMICS
TEST 1. Classify the following topics as relating to
microeconomics or macroeconomics. Write MACRO if
the topic relates to Macroeconomics; MICRO if the topic
relates to Microeconomics.
1. a family’s decision about how much income to
save
2. the effect of government regulations on auto
emissions
3. the impact of higher national saving on
economic growth
4. a firm’s decision about how many workers to hire
5. the relationship between the inflation rate and
changes in the quantity of money
TEST 2. Classify the following questions as relating to
microeconomics or macroeconomics. Write MACRO if
the question relates to Macroeconomics; MICRO if the
question relates to Microeconomics
1. What determines the level of economic activity
in a society?
2. What determines how many goods and services
a nation actually produces?
3. What determines how households and
individuals spend their budgets?
4. What determines how many jobs are available
in an economy?
5. What combination of goods and services will
best fit their needs and wants, given the budget they
have to spend?
APPLIED ECONOMICS
TEST 1. Classify the following topics as relating to
microeconomics or macroeconomics. Write MACRO if
the topic relates to Macroeconomics; MICRO if the topic
relates to Microeconomics.
1. a family’s decision about how much income to
save
2. the effect of government regulations on auto
emissions
3. the impact of higher national saving on
economic growth
4. a firm’s decision about how many workers to hire
5. the relationship between the inflation rate and
changes in the quantity of money
TEST 2. Classify the following questions as relating to
microeconomics or macroeconomics. Write MACRO if
the question relates to Macroeconomics; MICRO if the
question relates to Microeconomics
1. What determines the level of economic activity
in a society?
2. What determines how many goods and services
a nation actually produces?
3. What determines how households and
individuals spend their budgets?
4. What determines how many jobs are available
in an economy?
5. What combination of goods and services will
best fit their needs and wants, given the budget they
have to spend?
APPLIED ECONOMICS
TEST 1. Classify the following topics as relating to
microeconomics or macroeconomics. Write MACRO if
the topic relates to Macroeconomics; MICRO if the topic
relates to Microeconomics.
1. a family’s decision about how much income to
save
2. the effect of government regulations on auto
emissions
3. the impact of higher national saving on
economic growth
4. a firm’s decision about how many workers to hire
5. the relationship between the inflation rate and
changes in the quantity of money
TEST 2. Classify the following questions as relating to
microeconomics or macroeconomics. Write MACRO if
the question relates to Macroeconomics; MICRO if the
question relates to Microeconomics
1. What determines the level of economic activity
in a society?
2. What determines how many goods and services
a nation actually produces?
3. What determines how households and
individuals spend their budgets?
4. What determines how many jobs are available
in an economy?
5. What combination of goods and services will
best fit their needs and wants, given the budget they
have to spend?
6. How do people decide whether to work, and if 6. How do people decide whether to work, and if
so, whether to work full time or part time? so, whether to work full time or part time?
7. How do people decide how much to save for 7. How do people decide how much to save for
the future? the future?
8. How do people decide whether they should 8. How do people decide whether they should
borrow to spend beyond their current means? borrow to spend beyond their current means?
9. What determines a nation’s standard of living? 9. What determines a nation’s standard of living?
10. What determines the products, and how many 10. What determines the products, and how many
of each, a firm will produce and sell? of each, a firm will produce and sell?
11. What determines what prices a firm will 11. What determines what prices a firm will
charge? charge?
12. What causes the economy to speed up? 12. What causes the economy to speed up?
13. What causes the economy to slow down? 13. What causes the economy to slow down?
14. What causes firms to hire more workers? 14. What causes firms to hire more workers?
15. What determines how a firm will produce its 15. What determines how a firm will produce its
products? products?
16. What determines how many workers it will hire? 16. What determines how many workers it will hire?
17. What causes the economy to grow over the 17. What causes the economy to grow over the
long term? long term?
18. How will a firm finance its business? 18. How will a firm finance its business?
19. When will a firm decide to expand, downsize, or 19. When will a firm decide to expand, downsize, or
even close? even close?
20. What causes firms to lay workers off? 20. What causes firms to lay workers off?

6. How do people decide whether to work, and if 6. How do people decide whether to work, and if
so, whether to work full time or part time? so, whether to work full time or part time?
7. How do people decide how much to save for 7. How do people decide how much to save for
the future? the future?
8. How do people decide whether they should 8. How do people decide whether they should
borrow to spend beyond their current means? borrow to spend beyond their current means?
9. What determines a nation’s standard of living? 9. What determines a nation’s standard of living?
10. What determines the products, and how many 10. What determines the products, and how many
of each, a firm will produce and sell? of each, a firm will produce and sell?
11. What determines what prices a firm will 11. What determines what prices a firm will
charge? charge?
12. What causes the economy to speed up? 12. What causes the economy to speed up?
13. What causes the economy to slow down? 13. What causes the economy to slow down?
14. What causes firms to hire more workers? 14. What causes firms to hire more workers?
15. What determines how a firm will produce its 15. What determines how a firm will produce its
products? products?
16. What determines how many workers it will hire? 16. What determines how many workers it will hire?
17. What causes the economy to grow over the 17. What causes the economy to grow over the
long term? long term?
18. How will a firm finance its business? 18. How will a firm finance its business?
19. When will a firm decide to expand, downsize, or 19. When will a firm decide to expand, downsize, or
even close? even close?
20. What causes firms to lay workers off? 20. What causes firms to lay workers off?