ECONOMICS TODAY THE MICRO VIEW
EXAM SCRIPT UPDATED QUESTIONS AND
ACCURATE ANSWERS FULL SOLUTION
●● as a result of a severe recession, the total output or gross domestic
product of a nation falls by 4%
Answer: macro
●● increased consumer spending causes the national unemployment rate
to fall
Answer: macro
●● increased consumer spending causes the rate of inflation to rise
Answer: macro
●● optimism about future car sales leads general motors to hire more
auto workers
Answer: micro
●● robotic technology reduces the demand for auto workers
Answer: microf
,●● Positive or normative?
the richest 1% of americans should pay more taxes than the rest of the
99%
Answer: normative
●● Positive or normative?
a decrease in the supply of coconut will increase the price of german
chocolate cake, a good which required coconut shavings as a key
ingredient
Answer: positive
●● Positive or normative?
the higher the minimum wage, the highers the price of goods and
services is likely to be
Answer: positive
●● positive or normative?
social welfare spending in sweden occupies too large a portion of the
national budget
Answer: normative
●● the study how individuals, firms, and society make decisions to
allocate limited resources to many competing wants
Answer: economics
, ●● our unlimited wants clash with limited resources
Answer: scarcity
●● the factors that motivate individuals and firms to make decisions in
their best interest
Answer: incentives
●● the decision making by individuals, businesses, industries, and
governments
Answer: microeconomics
●● the broader issues in the economy such as inflation, unemployment,
and national output of goods and services
Answer: macroeconomics
●● assumption used in economics where other relevant factors or
variables are held constant
Answer: ceteris paribus
●● how well resources are used and allocated
Answer: efficiency
EXAM SCRIPT UPDATED QUESTIONS AND
ACCURATE ANSWERS FULL SOLUTION
●● as a result of a severe recession, the total output or gross domestic
product of a nation falls by 4%
Answer: macro
●● increased consumer spending causes the national unemployment rate
to fall
Answer: macro
●● increased consumer spending causes the rate of inflation to rise
Answer: macro
●● optimism about future car sales leads general motors to hire more
auto workers
Answer: micro
●● robotic technology reduces the demand for auto workers
Answer: microf
,●● Positive or normative?
the richest 1% of americans should pay more taxes than the rest of the
99%
Answer: normative
●● Positive or normative?
a decrease in the supply of coconut will increase the price of german
chocolate cake, a good which required coconut shavings as a key
ingredient
Answer: positive
●● Positive or normative?
the higher the minimum wage, the highers the price of goods and
services is likely to be
Answer: positive
●● positive or normative?
social welfare spending in sweden occupies too large a portion of the
national budget
Answer: normative
●● the study how individuals, firms, and society make decisions to
allocate limited resources to many competing wants
Answer: economics
, ●● our unlimited wants clash with limited resources
Answer: scarcity
●● the factors that motivate individuals and firms to make decisions in
their best interest
Answer: incentives
●● the decision making by individuals, businesses, industries, and
governments
Answer: microeconomics
●● the broader issues in the economy such as inflation, unemployment,
and national output of goods and services
Answer: macroeconomics
●● assumption used in economics where other relevant factors or
variables are held constant
Answer: ceteris paribus
●● how well resources are used and allocated
Answer: efficiency
