lOMoAR cPSD| 37668344
lOMoARcPSD|37668344
TESTBANK-CHAP-23 PRINCIPLES OF
ECONOMICS 2024|2025
Measuring a Nation’s Income
Multiple Choice – Section 00: Introduction
1. Macroeconomists study
a. the decisions of individual households and firms.
b. the interaction between households and firms.
c. economy-wide phenomena.
d. regulations imposed on firms and unions.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Knowledge
2. Which of the following headlines is more closely related to what microeconomists
study than to what macroeconomists study?
a. Unemployment rate falls from 7.5 percent to 7.3 percent.
b. Real GDP falls by 0.4 percent in the third quarter.
c. Inflation was 2.4 percent last year.
d. The price of gasoline rises due to rising oil prices.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Micro
KEYWORDS: BLOOM'S: Comprehension
NOTES: r
3. Which of the following questions is more likely to be studied by a
microeconomist than amacroeconomist?
a. Why do prices in general rise by more in some countries than in others?
b. Why do wages differ across industries?
, lOMoAR cPSD| 37668344
c. Why do national production and income increase in some periods and not in others?
5592 Measuring a Nation’s Income
d. How rapidly is GDP currently increasing?
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Micro
KEYWORDS: BLOOM'S: Comprehension
4. Which of the following topics are more likely to be studied by a macroeconomist
than by amicroeconomist?
a. the effect of taxes on the prices of airline tickets, and the profitability of
automobile-manufacturing firms
b. the price of beef, and wage differences between genders
c. how consumers maximize utility, and how prices are established in markets for
agricultural products
d. the percentage of the labor force that is out of work, and differences in average
income from country to country
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Comprehension
5. A macroeconomist is interested in
a. explaining how changes in sellers’ behavior affect prices of a particular good.
b. explaining price changes in a particular market.
c. explaining why the unemployment rate is higher.
d. All of the above are correct.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
, lOMoAR cPSD| 37668344
KEYWORDS: BLOOM'S: Comprehension
Measuring a Nation’s Income 5593
NOTES: r
6. Which of the following is not a question addressed by macroeconomists?
a. Why is average income high in some nations but low in others?
b. What, if anything, can the government do to promote growth in incomes, low
inflation, and stable employment?
c. What is the impact of foreign competition on the U.S. auto industry?
d. Why do production and employment expand in some years and contract in others?
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Knowledge
7. Which of the following is not a question that macroeconomists address?
a. Why is average income high in some countries while it is low in others?
b. Why does the price of oil rise when war erupts in the Middle East?
c. Why do production and employment expand in some years and contract in others?
d. Why do prices rise rapidly in some periods of time while they are more stable in other
periods?
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Comprehension
8. The basic tools of supply and demand are
a. useful only in the analysis of economic behavior in individual markets.
b. useful in analyzing the overall economy, but not in analyzing individual markets.
c. central to microeconomic analysis, but seldom used in macroeconomic analysis.
d. central to macroeconomic analysis as well as to microeconomic analysis.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Easy
, lOMoAR cPSD| 37668344
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
lOMoARcPSD|37668344
TESTBANK-CHAP-23 PRINCIPLES OF
ECONOMICS 2024|2025
Measuring a Nation’s Income
Multiple Choice – Section 00: Introduction
1. Macroeconomists study
a. the decisions of individual households and firms.
b. the interaction between households and firms.
c. economy-wide phenomena.
d. regulations imposed on firms and unions.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Knowledge
2. Which of the following headlines is more closely related to what microeconomists
study than to what macroeconomists study?
a. Unemployment rate falls from 7.5 percent to 7.3 percent.
b. Real GDP falls by 0.4 percent in the third quarter.
c. Inflation was 2.4 percent last year.
d. The price of gasoline rises due to rising oil prices.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Micro
KEYWORDS: BLOOM'S: Comprehension
NOTES: r
3. Which of the following questions is more likely to be studied by a
microeconomist than amacroeconomist?
a. Why do prices in general rise by more in some countries than in others?
b. Why do wages differ across industries?
, lOMoAR cPSD| 37668344
c. Why do national production and income increase in some periods and not in others?
5592 Measuring a Nation’s Income
d. How rapidly is GDP currently increasing?
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Micro
KEYWORDS: BLOOM'S: Comprehension
4. Which of the following topics are more likely to be studied by a macroeconomist
than by amicroeconomist?
a. the effect of taxes on the prices of airline tickets, and the profitability of
automobile-manufacturing firms
b. the price of beef, and wage differences between genders
c. how consumers maximize utility, and how prices are established in markets for
agricultural products
d. the percentage of the labor force that is out of work, and differences in average
income from country to country
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Comprehension
5. A macroeconomist is interested in
a. explaining how changes in sellers’ behavior affect prices of a particular good.
b. explaining price changes in a particular market.
c. explaining why the unemployment rate is higher.
d. All of the above are correct.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
, lOMoAR cPSD| 37668344
KEYWORDS: BLOOM'S: Comprehension
Measuring a Nation’s Income 5593
NOTES: r
6. Which of the following is not a question addressed by macroeconomists?
a. Why is average income high in some nations but low in others?
b. What, if anything, can the government do to promote growth in incomes, low
inflation, and stable employment?
c. What is the impact of foreign competition on the U.S. auto industry?
d. Why do production and employment expand in some years and contract in others?
ANSWER: c
POINTS: 1
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Knowledge
7. Which of the following is not a question that macroeconomists address?
a. Why is average income high in some countries while it is low in others?
b. Why does the price of oil rise when war erupts in the Middle East?
c. Why do production and employment expand in some years and contract in others?
d. Why do prices rise rapidly in some periods of time while they are more stable in other
periods?
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC:General Macro
KEYWORDS: BLOOM'S: Comprehension
8. The basic tools of supply and demand are
a. useful only in the analysis of economic behavior in individual markets.
b. useful in analyzing the overall economy, but not in analyzing individual markets.
c. central to microeconomic analysis, but seldom used in macroeconomic analysis.
d. central to macroeconomic analysis as well as to microeconomic analysis.
ANSWER: d
POINTS: 1
DIFFICULTY: Difficulty: Easy
, lOMoAR cPSD| 37668344
LEARNING OBJECTIVES: ECON.MANK.15.110 - LO: 23-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
