Introduction to Macroeconomics Quiz

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

Households and firms

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

International Monetary Fund policy

In macroeconomics, the economy can best be understood through the use of Money Models Pricing Debates

Models

Which best describes what injector factors bring to an economic system? Factors of production Imports Consumers Money

Money

This is a graph showing price and total output in the short and long run According to this graph, how does supply behave in the long run? Output remains constant Output increases Output cannot be predicted Output decreases

Output remains constant

The aim of the study of macroeconomics is to examine The interactions between individual producers and consumers The behavior of factors affecting the economy The relationship between supply and demand The economy's viability

The behavior of factors affecting the economy

The aggregate is A type of economic system The total number of goods demanded or supplied A form of revenue The total profit made on sales

The total number of goods demanded or supplied

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

They take money out of the economic system

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

Prices are set

In microeconomics, price helps determine both quantity supplied and quantity demanded. Which other factors can impact each by causing a shift to occur? Quantity supplied is determined by production costs, and quantity demanded is determined by desire for the product Quantity supplied is determined by production costs, and quantity demanded is determined by producer behavior Quantity supplied is determined by consumer behavior, and quantity demanded is determined by aggregate demand Quantity supplied is determined by producer behavior, and quantity demanded is determined by desire for the product

Quantity supplied is determined by production costs, and quantity demanded is determined by desire for the product