Macroeconomics Involves The Study Of The

Question: Macroeconomics involves the study of:

  • the gross domestic product of a country.

  • * family incomes in a given region.

  • * the competitive aspects of identical products.

  • * spatial changes in the population of a country.

  • Answer: the gross domestic product of a country.

  • Question: Microeconomics focuses on:

  • * taxation policies.

  • * the employment rate in a country.

  • * the gross domestic product of a country.

  • * individual businesses.

  • Answer: individual businesses.

  • Question:

  • Answer: Private-sector businesses are free to make their own choices regarding what they will produce.

  • Question: In the context of monetary policy, when the economy is weak, the Fed:

  • * withdraws funds from banks.

  • * buys government securities on the open market.

  • * asks banks to cut back on the loans they make.

  • * helps reduce inflationary pressures in the economy.

  • Answer: buys government securities on the open market.

  • Question:

  • Answer: banks obtaining funds at a lower cost.

  • Question: Which of the following factors acts as a motivator for business owners in a capitalist economy?

  • * Social and economic equality in society

  • * The right to spend after-tax income however one sees fit

  • * Guaranteed profits for privately owned enterprises

  • * Government welfare programs

  • Answer: The right to spend after-tax income however one sees fit

  • Question:

  • Answer: privatization

  • Question: _____ is a market structure with only a handful of competitors selling products that can be similar or different and has high barriers to entry.

  • * Pure competition

  • * Monopolistic competition

  • * Oligopoly

  • * Monopoly

  • Answer: Oligopoly

  • Question: Which of the following is an example of a natural monopoly?

  • * Network television

  • * Agriculture

  • * Public utilities

  • * The automobile industry

  • Answer: Public utilities

  • Question: _____ refers to the relationship between the goods and services that an economy generates and the resources needed to generate them.

  • * Supply curve

  • * Equilibrium quantity

  • * Productivity

  • * Reserve requirement

  • Answer: Productivity

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