Macroeconomics is the study of ________.

 *
1 point

A) the choices made by individuals in an economy

B) various political groups within an economy
C) economic aggregates and the economy as a whole
D) the statistical methods used in economics

Which of the following is an example of a macroeconomic aggregate? *

1 point

A) The total cost incurred by a firm

B) The income earned by a household
C) The annual inflation rate in an economy
D) The profit earned by an entrepreneur

An macroeconomics class is likely to discuss ________. *

1 point

A) the relationship between the price of a good and its quantity demanded
B) the annual growth rate of an economy's output
C) the average revenue and cost curves of a firm
D) the relationship between the utility derived from a good and the number of units consumed

Which of the following is a macroeconomic concept? *

1 point

A) The income per capita of a country

B) The average revenue earned by a firm
C) The degree of responsiveness of the quantity supplied of a good to its price
D) The total satisfaction derived from the consumption of a good

Which of the following questions have a macroeconomic focus?

1 point

A) How does a monopolist decide how much to produce?

B) What is the unemployment rate in your country?
C) How does the demand for a good change when there is an increase in a consumer's income?
D) How does a consumer choose which goods to consume given his or her income?

Which of the following questions can be answered using the concepts of

macroeconomics? *
1 point

A) Why does the rate of economic growth fluctuate from year to year?
B) What is the difference between demand and quantity demanded?
C) What is the effect of an increase in price on the supply of a good?
D) Why do some firms produce differentiated goods?

National income accounts measure the ________.

1 point

A) level of aggregate economic activity in a country

B) labor force participation rate in a country
C) total amount of capital goods available in a country
D) total money supply in a country

Which of the following is NOT a component of macroeconomics? *

1 point

A) Unemployment rate
B) The profits of a large corporation
C) Inflation rates
D) Gross domestic product

Which of the following would a macroeconomist study?

1 point

A) The total cost incurred by a firm

B) The income earned by a household
C) The annual inflation rate in an economy
D) The profit earned by an entrepreneur

How is income per capita calculated? *

1 point

A) Dividing a nation's aggregate income by the number of people in the country

B) Averaging the individual incomes of all working people
C) Dividing GDP by the number of households
D) None of the above

What is necessary for an economic downturn to be classified as a recession? *

1 point

A) The unemployment rate reaches 10 percent

B) Negative inflation for one year
C) Negative economic growth for one year
D) Aggregate economic output falls for two consecutive quarters

What framework is used to measure the level of aggregate economic activity in a

country? *
1 point

A) National economic index

B) Measure of economic efficiency
C) Aggregate income totals
D) National income accounts

Which of the following questions cannot be answered using the concepts of

macroeconomics? *
1 point

A) What will interest rates do over the next year?

B) Why does the rate of economic growth fluctuate from year to year?
C) What is the unemployment rate in a country?
D) How does the inflation rate relate to economic growth?

A person is officially unemployed if three conditions are satisfied: he or she ________.  *

1 point

A) does not have a job

B) has actively looked for work in the prior 4 weeks
C) is currently available for work
D) meets all the above conditions

________ is the market value of the final goods and services produced in a country
during a particular period of time. *
1 point

A) GNP
B) GDP
C) Net product value
D) Total product

GDP is a measure of ________, not a measure of ________. *

1 point

A) sales to consumers; production

B) production; sales to consumers
C) sales to consumers; consumption
D) income; production

Double counting occurs when ________ included in the calculation of the GDP. *
1 point

A) inputs are
B) unsold inventories are
C) depreciation is
D) household production is

Which of the following is likely to be included in a country's GDP for a particular year?  *
1 point

A) The total amount of steel used in the production of automobiles in that year
B) An unsold inventory of automobiles produced in that year
C) An unused stock of goods produced in the previous year
D) The total amount of flour used by bakeries to make bread in that year

A factory in Techland could not sell 20 percent of its output during a certain year due
to a decrease in the demand for its product. Which of the following would be true if it
produced 20 percent less? *
1 point

A) Techland's GDP for that year would have been higher.

B) Techland's GDP would have remained the same.
C) Techland's GDP for that year would have been lower.
D) Techland's income per capita for that year would have been higher.

There is only one firm in a small island country. The firm produced 1,000 units of Good
X during a particular year, out of which it could sell 900 units. If each unit of the good
sells for $500, what is the GDP of the country? *
1 point

A) $40,000
B) $450,000
C) $500,000
D) $150,000

The total value of inputs used in the production of 100,000 units of a good
manufactured in a country is $150,000. Assume that the country produces only this
good and each unit of the good sells for $10. What is the GDP of the country? *
1 point

A) $1,000,000
B) $1,150,000
C) $150,000
D) $250,000

How does the income approach to measuring GDP compare to the production and
expenditure approach to measuring GDP? *
1 point
A) It is lower, because some of the revenue from selling goods goes back into the production of
more goods.
B) It is the same, because all revenues are either payed to workers at the company or to the
owners of the company.
C) It is higher, because there are multiple stages along the production process where income is
earned.
D) It is higher if the economy is in a time of strong economic growth, and it is lower in times of
recession.

The circular flow diagram implies that if accounting is done correctly, the market value
of ________ the market value of ________. *
1 point

A) production must exceed; expenditure

B) income must exceed; production
C) expenditure must equal; income
D) expenditure must exceed; income

Which of the following holds true in a circular flow diagram? *

1 point

A) Factor flows are represented by drawing arrows from the firm sector to the household sector.
B) Income flows are represented by drawing arrows from the household sector to firms.
C) Production flows are represented by drawing arrows from the firm sector to the household
sector.
D) Expenditure flows are represented by drawing arrows from the firm sector to the household
sector.

Which of the following is an example of physical capital? *

1 point

A) A stock
B) A bond
C) A factory
D) A worker

Which equality is NOT guaranteed by the circular flow diagram? *

1 point

A) The market value of production must equal the market value of expenditure.
B) The market value of expenditure must equal the market value of income.
C) The income paid to factors of production must equal the market value of expenditure.
D) All of the above are guaranteed by the circular flow diagram.