Macro Econ- Chapter 1

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

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

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

labor market

In countries like ____ the command economy predominates.

Cuba & North Korea

In the ___, households receive good and services and pay firms for them.

goods and service market

The two main tools of macroecon policy include monetary policy & fiscal policy, which involves ___ spending.

government

Which of the following best describes a fiscal policy tool?

government spending

Which of the following best describes a monetary policy tool?

interest rate

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

low inflation

The basic difference between macroecon and microecon is:

microecon concentrates on behaviors of individual consumers and firms while macro econ focuses on the performance of the entire economy.

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

A command economy

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

Cuba

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

a decrease in the unemployment rate

Which of the following is generally accepted as a valid criticism of the production of useful goods and services?

Environmental pollution

In a command economy, the ___ either makes most economic decisions itself or at least strongly influences how the decisions are made.

Government

Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?

International Trade

In a ___, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

Market-oriented economy

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

The Macro-economy

In the first chapter of The Wealth of Nations, Smith introduces the idea of ___, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.

division of labor

Microecon topics do not include:

the profit of maximizing decisions of an individual manufacturer.

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

unemployed people