Chapter 01 Quiz

Which of the following statements most likely lies within the realm of microeconomics?

An increase in labor costs will increase the additional cost of producing another bus.

In which of the following countries will the national government have the greatest influence with respect to the nation's economy?

Cuba

The basic difference between macroeconomics and microeconomics is that:

microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets).

The basic difference between macroeconomics and microeconomics is:

microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.

Macroeconomic topics do not usually include:

the profit maximizing decisions of an individual manufacturer.

Which of the following best denotes the reason for the existence of substantial black markets?

a command economy

Which of the following is most likely a topic of discussion in macroeconomics?

a decrease in the unemployment rate

The circular flow diagram of economic activity is a model of the:

flow of goods, services, and payments between households and firms.

Which of the following best describes a monetary policy tool?

interest rates

In the ____________, households work and receive payment from firms.

labor market