econ quiz 1

Which of the following characteristics relate to black market?

An illegal market that breaks government rules on prices or sales.

Which of the following refers to the social arrangements that determine what is produced, how it is produced, and for whom it is produced?

economy

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

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

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.

government

Which of the following best describes a fiscal policy tool?

government spending

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

labor market

When nations desire a healthy macroeconomy, they typically focus on four goals, one of these being:

low inflation

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.

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

a decrease in the unemployment rate

Model is an institution that brings together buyers and sellers of goods or services.

False

In countries like _____________ the command economy predominates.

Libya and North Korea

What name is given to policy that involves altering the quantity of money and thus affecting the level of interest rates and the extent of borrowing?

Monetary policy

What is meant by microeconomics?

The branch of economics that focuses on actions of particular actors within the economy, like households, workers, and business firms.

Which of the following characteristics relate to economy?

The social arrangements that determine what is produced, how it is produced, and for whom it is produced.

Macroeconomics primarily examines:

broad issues such as national output, employment and inflation.

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

cuba

The opportunity cost of attending university is likely to include all except which of the following?

the cost of haircuts received during the school term

Goods and services market is a market in which firms are sellers of what they produce and households are buyers.

true

If macroeconomics looks at the economy as a whole, it focuses on which of the following?

unemployed people