INTERMEDIATE MICROECONOMICS A
MODERN APPROACH 10TH EDITION EXAM
QUESTIONS AND SOLUTIONS GRADED A+
◉ Macroeconomics.
Answer: The study of aggregate behaviour at the country or
world level
◉ income must equal
expenditure because.
Answer: - Every transaction has a buyer and a seller.
- Every dollar of spending by some buyer is a dollar of
income for some seller.
◉ Circular flow diagram.
Answer:
◉ Gross domestic product (GDP).
Answer: is a measure of
the income and expenditures of an economy; it is the total market
value of all final goods and
, services produced within a country in a given time
period
◉ Six important features of GDP.
Answer: • Market prices.
• Final goods, not intermediate goods.
• Goods and services.
• Only goods and services currently produced.
• Production within the geographic confines of a country.
• Production within a specific interval of time.
◉ GDP formula.
Answer: Y=C+I+G+NX
◉ Y.
Answer: output/GDP
◉ C.
Answer: consumption; the spending by households
on goods and services.
◉ Ig.
MODERN APPROACH 10TH EDITION EXAM
QUESTIONS AND SOLUTIONS GRADED A+
◉ Macroeconomics.
Answer: The study of aggregate behaviour at the country or
world level
◉ income must equal
expenditure because.
Answer: - Every transaction has a buyer and a seller.
- Every dollar of spending by some buyer is a dollar of
income for some seller.
◉ Circular flow diagram.
Answer:
◉ Gross domestic product (GDP).
Answer: is a measure of
the income and expenditures of an economy; it is the total market
value of all final goods and
, services produced within a country in a given time
period
◉ Six important features of GDP.
Answer: • Market prices.
• Final goods, not intermediate goods.
• Goods and services.
• Only goods and services currently produced.
• Production within the geographic confines of a country.
• Production within a specific interval of time.
◉ GDP formula.
Answer: Y=C+I+G+NX
◉ Y.
Answer: output/GDP
◉ C.
Answer: consumption; the spending by households
on goods and services.
◉ Ig.
