d.
the effect of a wage change on the productivity of manufacturing workers
ANSWER:
b
42. What is most likely a topic of discussion in a microeconomics course?
a.
the amount of government spending
b.
the number of individuals who lose their job because of structural changes in the economy
c.
the average cost of producing coffee due to flooding
d.
the share of national income paid to the government in taxes
ANSWER:
c
43. What is the basic difference between macroeconomics and microeconomics?
a.
Microeconomics is concerned with the trees (individual markets), while macroeconomics is concerned with the forest (aggregate markets).
b.
Macroeconomics is concerned with positive economics, while microeconomics is concerned with normative economics.
c.
Macroeconomics is concerned with policy decisions, while microeconomics applies only to theory.
d.
Microeconomics looks at the forest (aggregate markets), while macroeconomics is concerned with the trees (individual markets).
ANSWER:
a
44. What is the term for the branch of economics that focuses on outcomes in highly aggregated markets, such as the markets for labour or consumer products?
a.
government economics
b.
macroeconomics
c.
efficiency economics
d.
monopoly economics
ANSWER:
b
45. Which term refers to the branch of economics that focuses on the conduct of affairs within narrowly defined units, such as households or business firms?
a.
macroeconomics
b.
positive economics
c.
applied economics
d.
microeconomics
ANSWER:
d
46. What topic does microeconomics NOT usually include?
a.
how firms choose output to maximize profits
b.
how consumers maximize utility subject to a budget constraint
c.
how wages are determined in the labour market
d.
how national income is calculated
ANSWER:
d
47. Which term refers to the branch of economics that studies the economy as a whole?
a.
positive economics
b.
microeconomics
c.
monetary economics
d.
macroeconomics
ANSWER:
d
48. Which statement best describes macroeconomics?
a.
It is narrower in scope than microeconomics.
b.
It is concerned with the expansion of privately owned firms into large corporations.
c.
It is concerned with the expansion and contraction of the overall economy.
d.
It analyzes mergers and acquisitions between monopolies.
ANSWER:
c
49. Which topic does microeconomics NOT usually include?
a.
the determinants of the demand for smartphones
b.
government spending and taxation
c.
the impact of increasing the minimum wage
d.
the barriers to entry that are needed for a monopoly to exist
ANSWER:
b
50. Which topic does macroeconomics NOT generally include?
a.
government spending and taxation
b.
the impact of large government budget deficits on private investment spending
c.
the determinants of the supply of wheat by farmers
d.
the relationship between consumption and aggregate expenditures
ANSWER:
c
51. Which area of study is most concerned with measuring the rate of inflation?
a.
macroeconomics
b.
normative economics
c.
capitalist economics
d.
growth economics
ANSWER:
a