Macroeconomic Questions

The question "Is the price of a share of IBM stick higher today than the price of a share of Xerox stock?" is ________________.

A factual judgement question

The question "Do most Americans believe that government is too big?" is...

A factual question

The question "Does the minimum wage result in higher unemployment?" is ______________.

A reasoned judgement question

The question "Do you like the handling of a Toyota more than a Subaru?" is...

A taste question

Suppose that your favorite aunt has just given you a $100 gift certificate for your birthday that can be used at a local bookstore. Suppose further that you have decided to divide the money between books and coffee in some way and that the price of a book is $20 and the price of a cup of coffee is $2. Given these facts, take a sheet of paper and graphically represent your budget constraint and label that constraint with the letter A. Then choose a point on constraint A that reflects in your estimation the best way to spend your gift certificate and label that point with the letter B. Now, based on your graph (do not turn in the graph), which statement below most accurately describes your graph?

Constraint A is the result of answering a positive question; Point B is the result of answering a normative question.

Which one of the following statements is NOT an example of a positive question?

Does China have the right policy when it comes to foreign trade?

Which one of the following is NOT a macroeconomic question?

How much will the California drought drive up the price of fresh vegetables?

Which one of the following is a macroeconomic question?

How much would the unemployment rate fall if the economy grows by 4% this year?

How are the question "Does innovation lead to economic growth?" and the question "Should government encourage innovation?" related?

The first question is a positive one; the second question is a normative one.

In deciding whether or not to place economic sanctions on another country because of international political conflicts, what are the macroeconomic issues?

There are macroeconomic issues for both countries such as the effect on the overall level of economic activity and unemployment.

Which one of the following questions is NOT an example of a normative question?

What do I have to do if I want to increase the return to my investments?

The question "Slower economic growth increase income inequality?" is ______________.

a positive macroeconomic question

Which one of the following is a macroeconomic question?

Would an increase in the minimum wage increase inflation?

Which one of the following is NOT a macroeconomic question?

Would legalization of marijuana nationwide result in a fall in the demand for cigarettes?

Suppose that you have just acquired a chemical manufacturing company and are trying to figure out what to produce. You talk to the plant manager and discover that the company can produce formaldehyde and sulfuric acid. You also find out that the maximum amount of formaldehyde that the company can produce in a month is 1 million liters if that is all it produces, while the maximum amount of sulfuric acid it can produce in a month (again assuming that is all it produces) is 5 million liters. Given these facts, take a sheet of paper and graphically represent the company's production possibility frontier and label that frontier with the letter A. Now suppose that you invent a new process for manufacturing sulfuric acid that is more efficient so that you can produce more sulfuric acid than before but with the same amount of inputs. Given that innovation, graphically represent the company's new production possibilities frontier on the same graph you just drew and label that new frontier with the letter B. Finally, based on your graph (do not turn in the graph), which statement below most accurately describes your sketch of the frontiers A and B (both their locations and their shapes)?

Your sketch is based on both factual thinking and reasoned judgement thinking.

The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. Given that, the question "What is the best measure of the average annual level of inflation over the past 10 years?" is...

a macroeconomic reasoned judgement question

The question "Did the Federal Reserve accurately predict the financial crisis of 2008?" is ______________.

a macroeconomic reasoned judgement question

The question "Do free trade agreements lead to faster economic growth?" is _____________.

a macroeconomic reasoned judgement question

The question "Is greater income inequality a moral issue?" is ________________.

a normative macroeconomic question

The question "Who has been hurt the worst by the deflation that Japan has experienced in recent years?" is _______________.

a normative macroeconomic question

The question "How much of a premium would consumers be willing to pay for a solar-powered car?" is _____________________.

a MICROeconomic reasoned judgement question

The Bureau of Economic Analysis calculates a number of different measures of inflation: the GDP Deflator, the Consumer Price Index, the Wholesale Price Index, etc. Given that, the question "According to the Bureau of Economic Analysis, what has been the average annual level of inflation (as measured by the GDP Deflator) over the past 10 years?" is...

a macroeconomic factual question

The question "What has been the effect of deflation (that is, a general fall in prices) on the income of the average Japanese worker?" is...

a positive macroeconomic question

The question "Do businesses primarily fail because of mismanagement?" is...

a reasoned judgement question