b.
Microeconomics concentrates on the behaviour of individual consumers, while macroeconomics focuses on the behaviour of firms.
c.
Microeconomics concentrates on the behaviour of individual consumers and firms, while macroeconomics focuses on the performance of the entire economy.
d.
Microeconomics concentrates on individual markets, while macroeconomics focuses primarily on the mechanics of the stock market.
ANSWER:
c
32. What are economics’ two main branches of study?
a.
free and closed markets
b.
microeconomics and macroeconomics
c.
fiscal and monetary policies
d.
normative and positive economics
ANSWER:
b
33. Which of the following is most likely a topic of discussion in macroeconomics?
a.
a decrease in the price of steel
b.
an increase in the production of 4K televisions
c.
an increase in the inflation rate
d.
a decrease in the sales of high-priced luxury SUVs
ANSWER:
c
34. What is the term for the branch of economics that studies the decisions made by individual firms and consumers?
a.
microeconomics
b.
capitalism
c.
macroeconomics
d.
consumerism
ANSWER:
a
35. Which term refers to the branch of economics that studies the aggregate decisions of all households and all firms?
a.
normative economics
b.
microeconomics
c.
positive economics
d.
macroeconomics
ANSWER:
d
36. Which statement would most likely be within the realm of microeconomics?
a.
The government decreased spending in the final quarter of the year.
b.
The price of oranges increased due to a cold winter in Florida.
c.
The unemployment rate increased due to a global recession.
d.
The inflation rate decreased after the Bank of Canada increased interest rates.
ANSWER:
b
37. Which statement would most likely be within the realm of macroeconomics?
a.
The pharmaceutical industry is dominated by a few large firms.
b.
The government sets spending amounts and tax rates.
c.
The wages of baseball players are very high compared to kindergarten teachers.
d.
The quantity of computers demanded will increase as prices decrease.
ANSWER:
b
38. What type of science do most people consider economics to be?
a.
social science
b.
life science
c.
physical science
d.
formal science
ANSWER:
a
39. Which topic does macroeconomics usually NOT include?
a.
the rate of employment
b.
the cost of living
c.
the different kinds of business competition
d.
the interest rates
ANSWER:
c
40. Which of the following lies primarily within the realm of microeconomics?
a.
an economic model forecasting the impact of a tax decrease on consumer spending and national income
b.
a model forecasting the impact of a change in interest rates on the level of business investment in the economy
c.
a statistical analysis of the relationship between the growth of the money supply and the rate of inflation
d.
a study of supply and demand conditions in the market for orange juice
ANSWER:
d
41. Which of the following lies primarily within the realm of macroeconomics?
a.
the price elasticity of demand for online streaming services
b.
the impact of technology on economic growth
c.
the influence advertising has on children and what toys become popular