7. Intro to Macroeconomics

In microeconomics, what occurs when equilibrium is reached? Prices decline. Prices increase. Prices are set. Prices fluctuate.

c

Which best describes what occurs in the product market? the exchange of labor for capital the exchange of goods and services for factors of production the exchange of goods and services for money the exchange of money for factors of production

c

The circular flow model examines interactions between which two groups? households and firms households and consumers firms and producers firms and government

a

Which best describes the purpose served by economic models within an economic system? Models identify patterns. Models determine the business cycle. Models control change. Models define global demand.

a

Which body or group is most able to use money to influence the economy? government suppliers firms producers

a

Which statement best describes why a government's actions are important in macroeconomics? Check all that apply. Government controls industry through policy. Government is both a consumer and a producer. Government can prevent changes and challenges. Government can use policy to influence the economy. Government can accurately predict economic trends.

a b d

A long-run equilibrium occurs when long-run aggregate supply and aggregate demand meet. What does having long-run equilibrium indicate about a society? The society's supply and demand have stagnated. The society is using all of its resources efficiently. The society's needs are being fully met. The society is not using all of its resources effectively.

b

Which best describes why taxes and savings are considered leakage factors? They take money out of households. They take money out of the economic system. They take money out of the economic sectors. They take money out of the financial sector.

b

Economic interactions involving which of the following would most likely be studied in macroeconomics? a family's finances trade at a duty-free shop on the U.S.-Canadian border International Monetary Fund policy a small company's supply contract for a local town

c

Which best describes what injector factors bring to an economic system? factors of production imports consumers money

d