Macroeconomics: Quiz 3

Economic models are used to

simplify reality to predict outcomes.

Which of the following is a microeconomic concern?

Consumer behavior

A microeconomist would study all of the following issues EXCEPT

the effect of a change in income taxes on the nation's rate of unemployment.

Normative economic statements

Contain value judgements

One topic of study for a microeconomist would be the

Effects if a gasoline price increase on consumer behavior.

Microeconomics is the study of

How Individuals and firms make decisions. ()How rising prices affect the level of employment in the economy. (Incorrect) the behavior of the economy as a whole. (Incorrect)

Which of the following is a positive economic statement?

The Rate of unemployment of young African-Americans exceeds that of white Americans.

Positive economics

is objective.

A friend wants to learn how the unemployment rate is calculated and how inflation is measured. He asks you which economics course to take and you advise him to enroll in

macroeconomics.

A politician's statement that "to encourage economic growth, taxes should be cut,"

would be an example of a normative statement.