Macroeconomics Quizzes
The base year is 2005, and the GDP price index in 2004 is 92.0. This implies that the _____.
prices in 2005 higher than 2004
The opportunity cost to a consumer who smokes cigarettes consists of the
product that the consumer could have bought instead of cigarettes.
Which of the following purchases do national income accountants consider to be investment?
A new house
GDP tends to overstate economic well-being because it takes into account _____.
GDP tends to overstate economic well-being because it takes into account _____.
Which of the following activities is excluded from GDP, causing GDP to understate a nation's production?
Goods and services produced in underground economy
What do the colors of the arrows in the circular flow model represent?
Green arrows represent the flow of money; red arrows represent the flow of resources and goods.
The sale of a used automobile would not be included in GDP of the current year because it is _____.
Not current production
Which of the following measures is most often used to compare the standards of living in different countries?
Per capita income
GDP tends to overstate economic well-being because it takes into account _____.
Total spending
Which question is an example of a macroeconomic question?
What policies would be recommended for stimulating national economic growth?
Where is marginal cost found on a graph?
Where the desired product (10th, 50th, etc.), intersects with price
According to the circular flow model, product markets are where
businesses earn their revenues from households.
The problems of inflation and unemployment are
major topics of macroeconomics.
In the circular flow model of the market system, business firms
sell products and buy resources.