C. the economic activity of the government
D. particular sectors of the economy
Ans: B
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
5. Government actions designed to affect the performance of the economy as a whole are called _______ policies.
A. global
B. microeconomic
C. macroeconomic
D. social
Ans: C
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
6. The degree to which people have access to goods and services that make their lives easier, healthier, safer and more enjoyable is called the:
A. microeconomic standard
B. global standard
C. scarcity standard
D. standard of living
Ans: D
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
7. People who enjoy high standards of living usually have all of the following EXCEPT:
A. higher literacy rates
B. longer life expectancies
C. freedom from scarcity
D. better general health
Ans: C
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
8. The scarcity principle states that:
A. people do not have enough money to buy what they want
B. society will eventually run out of resources
C. with limited resources, having more of one thing means having less of another
D. some countries have fewer resources than others
Ans: C
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
9. The standard of living in an economy is best measured by:
A. average labour productivity
B. total output
C. output per person
D. the inflation rate
Ans: C
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
10. If Country A and Country B have the same population size, the standard of living in these two countries can still be different depending on:
A. their respective political systems
B. their respective inflation rates
C. their relative geographic size
D. the relative sizes of total output
Ans: D
AACSB: Reflective thinking
Blooms: Comprehension
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
11. When comparing the standard of living in two countries, it is important to adjust total output for differences in:
A. geographic area
B. employment levels
C. political systems
D. population
Ans: D
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
12. If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 200 million, then output per person:
A. doubles
B. increases, but by less than 100%
C. remains constant
D. decreases
Ans: C
AACSB: Reflective thinking
Blooms: Application
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
13. The process of steady increase in the quantity and quality of goods and services the economy can produce is called:
A. aggregation
B. globalisation
C. production
D. economic growth
Ans: D
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
14. Average labour productivity equals:
A. average production per year
B. total output