Econ - Macroeconomics

Economic interactions involving which of the following would most likely be studied in macroeconomics? a - a family's finances b - trade at a duty-free shop on the US Canadian Border c - International Monetary Fund Policy d - a small company's supply contract for a local town

c - International Monetary Fund Policy

What term is used in macroeconomics to describe the total supply and the total demand? a- capital b- inflation c- aggregate d- equilibrium

c- aggregate

What is the difference between inflation and deflation? a- Inflation can result from falling demand and boosts the value of money. Deflation can result from rising demand and reduces the value of money. b- Inflation can result from rising demand and boosts the value of money. Deflation can result from falling demand and reduces the value of money. c- Inflation can result from falling demand and reduces the value of money. Deflation can result from rising demand and boosts the value of money. d- Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.

d- Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.

Households provide (leakages, injectors, or factors of production) to firms, which assists in the production of goods and services.

factors of production

Exports purchased by a foreign sector are a (leakage or injector)

injector

Government spending by the government sector is a (leakage or injector).

injector

Investments made by the financial sector is a (leakage or injector).

injector

The foreign sector purchases exports, which are considered (leakages, injectors, or factors of production).

injectors

Savings by individuals outside a bank are a (leakage or injector)

leakage

Taxes collected by the government sector are a (leakage or injector)

leakage

The government sector collects taxes , which are considered (leakages, injectors, or factors of production);

leakages

To predict a change in the economy economists create a _______________ (map or model)

model

When individuals are looking for jobs but are unable to find work, they are said to be ______________

unemployed

The most common measure of inflation is a statistic called the ______________.

Consumer price index

The exchange of factors of production for income occurs in the ____________ market.

Factor

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

a - Government controls industry through policy b - Government is both a consumer and a producer d - Government can use policy to influence the economy

Macroeconomics help people understand, predict and anticipate what about the economy? Check all that apply a - economic actions taken by the government b - why families need money c - political debates regarding government actions d - what farmers need to product more of to be successful e - major economic events such as periods of high unemployment or inflation

a - economic actions take by the government c - political debates regarding government actions e - major economic events such as periods of high unemployment or inflation

Which best describes the purpose served by economic models within an economic system? a - models identify patterns b - models determine the business cycle c - models control change d - models define global demand

a - models identify patterns

What are some of the duties and responsibilities of the International Monetary Fund Policy (IMF)? Check all that apply. a - they facilitate international trade b - they promote family finances c - promote high employment d - sustain economic growth and reduce poverty around the world.

a - they facilitate international trade, c - promote high employment, d - sustain economic growth and reduce poverty around the world

What are the signs of low inflation? Check all that apply. a- Demand steadily rises. b- Demand steadily falls. c- Prices continue to increase. d- Prices continue to decrease. e- The economy grows in a healthy way. f- The economy stagnates and struggles.

a- Demand steadily rises. c- Prices continue to increase. e- The economy grows in a healthy way.

How do consumers' feelings about the economy help contribute to growth? a- Positive consumer attitudes influence spending habits. b- Positive consumer attitudes increase job prospects. c- Positive consumer attitudes inspire increased production. d- Positive consumer attitudes can end a depression.

a- Positive consumer attitudes influence spending habits.

Which of the following best describes the circular flow model? a- The model represents the movement of money throughout the economy. b- The model represents the interactions within sectors. c- The model represents the flow of goods and services between sectors. d- The model represents the changing relationships between actors.

a- The model represents the movement of money throughout the economy.

As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Check all that apply. a- cyclically unemployed b- domestically unemployed c- frictionally unemployed d- structurally unemployed e- still employed f- unemployed

a- cyclically unemployed f- unemployed

Government officials in Country M have determined that they need to take action to encourage the growth of their economy. To do this, they have introduced an incentive policy that offers citizens free education. This is extended to all individuals who sign a contract agreeing to work within their specific industry for the next ten years. Country M hopes to encourage economic growth by investing in a- education to reduce unemployment and increase production. b- new technologies to produce goods that are in great demand. c- resources that can be traded with other nations. d- research to develop goods that can be sold on a global scale.

a- education to reduce unemployment and increase production.

In the circular flow model, factors of production flow to firms. Which of the following are the primary factors of production? Check all that apply. a- labor b- capital c- goods d- land e- services

a- labor b- capital d- land

What is the name of the period when an economy begins to shrink? a- recession b- depression c- recovery d- prosperity

a- recession

The circular flow model examined interaction between which sectors of the economy? Check all that apply. a - private b - government c - businesses d - tech e - households

b - government, c - businesses, e - households

The aggregate is a - a type of economic system b - the total number of goods demanded or supplied c - a form of revenue d - the total profit made on sales

b - the total number of good demanded or supplied

Which best describes why taxes and savings are considered leakage factors? a - they take money out of households b - they take money out of the economic system c - they take money our of the economic sectors d - they take money out of the financial sector

b - they take money out of the economic system

Does a depression always follow a recession? a- Yes, the trough is always considered a depression. b- No, a depression is indicated when the recession is exceptionally long. c- Yes, for recovery to occur, the trough must be reached. d- No, the economy could decline quickly and bypass recession.

b- No, a depression is indicated when the recession is exceptionally long.

What decisions does the business cycle help businesses make? Check all that apply. a- whether to stay at old facilities or move to new facilities b- whether to grow or shrink the business c- whether to keep or change products d- whether to increase or decrease production e- whether to hire or lay off workers f- whether to invest or save money

b- whether to grow or shrink the business d- whether to increase or decrease production e- whether to hire or lay off workers f- whether to invest or save money

Microeconomics focuses on direct interactions between a - producers and market places b - consumers and market places c - producers and consumers

c - producers and consumers

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

c - the exchange of goods and services for money

What best describes what injector factors bring to an economic system? a - factors of production b - imports c - consumers d - money

d - money