Macro Econ Final Exam.

MACRO ECON FINAL EXAM. 1. In which of the following countries will the national government have the greatest influence with respect to the nation's economy? CUBA - CORRECT ANSWER 2. In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made. - CORRECT ANSWER government 3. 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? A. division of labour B. international trade C. economies of scale D. command economy - CORRECT ANSWER b 4. 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 A. market-oriented economy B. macroeconomy C. microeconomy D. command economy - CORRECT ANSWER A 5. Which of the following is generally accepted as a valid criticism of the production of useful goods and services A. government involvement B. the black market C. environmental pollution-- D. economic freedom - CORRECT ANSWER c 7. If macroeconomics looks at the economy as a whole, it focuses on which of the following? A. households B. business firms C. unemployed people D. the division of labor - CORRECT ANSWER c 8. In the ______________, households receive goods and services and pay firms for them A. labor market B. financial capital market C. goods and services market-- D. savings market - CORRECT ANSWER c 9. When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being: A. labor market B. financial capital market C. goods and services market D. savings market - CORRECT ANSWER c 10. The basic difference between macroeconomics and microeconomics is A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. B. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms. C. microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.---- D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment - CORRECT ANSWER c 11. Which of the following is most likely a topic of discussion in macroeconomics A. an increase in the price of a hamburger B. a decrease in the production of DVD players by a consumer electronics company C. an increase in the wage rate paid to automobile workers D. a decrease in the unemployment rate - CORRECT ANSWER D Specialization A. leads to greater self-sufficiency. B. can lead to an increase in overall production.--- C. allows workers to develop skills by working on a large number of tasks D. is always the result of an inefficient use of resources - CORRECT ANSWER b