those choices affect prices, the allocation of resources, and the well‐being of other agents.
A) Cost‐benefit analysis
B) Microeconomics
C) Macroeconomics
D) Empiricism
Answer: B
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Microeconomics and Macroeconomics
24) Which of the following is a topic studied by microeconomists?
A) National income calculations
B) Price determination by a firm
C) Measures to combat inflation
D) Interest rate determination
Answer: B
Difficulty: Easy
AACSB: Application of Knowledge
Topic: Microeconomics and Macroeconomics
25) Which of the following is a topic studied by microeconomists?
A) Energy consumption by a firm
B) Nationwide inflation rate
C) Economic growth as a means to alleviate poverty
D) Aggregate demand and aggregate supply in an economy
Answer: A
Difficulty: Medium
AACSB: Application of Knowledge
Topic: Microeconomics and Macroeconomics
7
Copyright © 2019 Pearson Education, Ltd.
26) ________ is the study of an economy as a whole.
A) Microeconomics
B) Cost‐benefit analysis
C) Behavioral economics
D) Macroeconomics
Answer: D
Difficulty: Easy
AACSB: Analytical Thinking
Topic: Microeconomics and Macroeconomics
27) Which of the following is a topic studied by macroeconomists?
A) Aggregate demand in an economy
B) Price determination by a firm
C) The consumption choice of a single household
D) The production decision of a firm
Answer: A
Difficulty: Medium
AACSB: Application of Knowledge
Topic: Microeconomics and Macroeconomics
28) Which of the following is a topic studied by macroeconomists?
A) The savings of a single household
B) The productivity of an agricultural farm
C) The total output of an economy
D) Price determination in a market
Answer: C
Difficulty: Medium
AACSB: Application of Knowledge
Topic: Microeconomics and Macroeconomics
29) Which of the following statements is true?
A) Microeconomics is the study of an economy as a whole.
B) Macroeconomics studies how individuals make choices.
C) The study of the inflation rate is covered under microeconomics.
D) The study of the unemployment rate is covered under macroeconomics.
Answer: D
Difficulty: Medium
AACSB: Application of Knowledge
Topic: Microeconomics and Macroeconomics
8
Copyright © 2019 Pearson Education, Ltd.
30) Which of the following statements correctly highlights the difference between microeconomics and
macroeconomics?
A) Microeconomics is descriptive, whereas macroeconomics is advisory.
B) Microeconomics primarily deals with positive analysis, whereas macroeconomics primarily deals with
normative analysis.
C) Microeconomics deals with a small part of the economy, whereas macroeconomics deals with
aggregate economic performance.
D) Microeconomics describes what economic agents actually do, whereas macroeconomics describes what
economic agents ought to do.
Answer: C
Difficulty: Easy