MACRO ECON QUESTIONS AND
ANSWERS WITH CORRECT UPDATE
1. nIn nwhich nof nthe nfollowing ncountries nwill nthe nnational ngovernment nhave nthe ngreatest
ninfluence nwith nrespect nto nthe nnation's neconomy? nCUBA n- nAnswer n- n
2. nIn na ncommand neconomy, nthe n__________ neither nmakes nmost neconomic ndecisions nitself nor
nat nleast nstrongly ninfluences nhow nthe ndecisions nare nmade. n- nAnswer n- ngovernment
3. nBecause nof ntheir nrelatively nsmall nnational neconomies, nwhich nof nthe nfollowing nis nmost nlikely
nconsidered nto nbe nthe nmost nimportant nfactor nfor nBelgium, nKorea, nand nCanada nto ntake nfull
nadvantage nof nspecialization?
A. ndivision nof nlabour
B. ninternational ntrade
C. neconomies nof nscale
D. ncommand neconomy n- nAnswer n- nb
4. nIn na n_______________________, nmost neconomic ndecisions nabout nwhat nto nproduce, nhow nto
nproduce nit, nand nfor nwhom nto nproduce nit nare nmade nby nbuyers nand nsellers
A. nmarket-oriented neconomy
B. nmacroeconomy
C. nmicroeconomy
D. ncommand neconomy n- nAnswer n- nA
5. nWhich nof nthe nfollowing nis ngenerally naccepted nas na nvalid ncriticism nof nthe nproduction nof
nuseful ngoods nand nservices
A. ngovernment ninvolvement
B. nthe nblack nmarket
,C. nenvironmental npollution--
D. neconomic nfreedom n- nAnswer n- nc
7. nIf nmacroeconomics nlooks nat nthe neconomy nas na nwhole, nit nfocuses non nwhich nof nthe
nfollowing?
A. nhouseholds
B. nbusiness nfirms
C. nunemployed npeople
D. nthe ndivision nof nlabor n- nAnswer n- nc
8. nIn nthe n______________, nhouseholds nreceive ngoods nand nservices nand npay nfirms nfor nthem
A. nlabor nmarket
B. nfinancial ncapital nmarket
C. ngoods nand nservices nmarket--
D. nsavings nmarket n- nAnswer n- nc
9. nWhen nnations ndesire na nhealthy nmacroeconomy, nthey ntypically nfocus non nthree ngoals, none nof
nthese nbeing:
A. nlabor nmarket
B. nfinancial ncapital nmarket
C. ngoods nand nservices nmarket
D. nsavings nmarket n- nAnswer n- nc
10. nThe nbasic ndifference nbetween nmacroeconomics nand nmicroeconomics nis
A. nmicroeconomics nconcentrates non nindividual nmarkets nwhile nmacroeconomics nfocuses nprimarily
non ninternational ntrade.
B. nmicroeconomics nconcentrates non nthe nbehaviour nof nindividual nconsumers nwhile
nmacroeconomics nfocuses non nthe nbehaviour nof nfirms.
C. nmicroeconomics nconcentrates non nthe nbehaviour nof nindividual nconsumers nand nfirms nwhile
nmacroeconomics nfocuses non nthe nperformance nof nthe nentire neconomy.----
, D. nmicroeconomics nexplores nthe ncauses nof ninflation nwhile nmacroeconomics nfocuses non nthe
ncauses nof nunemployment n- nAnswer n- nc
11. nWhich nof nthe nfollowing nis nmost nlikely na ntopic nof ndiscussion nin nmacroeconomics
A. nan nincrease nin nthe nprice nof na nhamburger
B. na ndecrease nin nthe nproduction nof nDVD nplayers nby na nconsumer nelectronics ncompany
C. nan nincrease nin nthe nwage nrate npaid nto nautomobile nworkers
D. na ndecrease nin nthe nunemployment nrate n- nAnswer n- nD
Specialization
nA. nleads nto ngreater nself-sufficiency.
B. ncan nlead nto nan nincrease nin noverall nproduction.---
C. nallows nworkers nto ndevelop nskills nby nworking non na nlarge nnumber nof ntasks
D. nis nalways nthe nresult nof nan ninefficient nuse nof nresources n- nAnswer n- nb
13. nIn na nmarket-oriented neconomy, nthe namount nof na ngood nthat nis nproduced nis nprimarily
ndecided nby nthe ninteraction no
fA. nall nconsumers.
B. nbuyers nand nsellers.
C. nproducers nand ninput nsuppliers.
D. nproducers nand ngovernment nplanning ncommittees n- nAnswer n- nb
14. nWhich nof nthe nfollowing nstatements nmost nlikely nlies nwithin nthe nrealm nof nmacroeconomics
A. nAn nincrease nin nthe nprice nof nautomobiles nwill nlead nto na ndecrease nin nthe nquantity nof
nautomobiles ndemanded.
B. nDue nto nprocess ninnovations nin ncomputer nchip nmanufacturing, nthe nmarket nsupply nof
ncomputers nincreased.
C. nDue nto nan neconomic nrecession, nmanufacturing nfirms nbegan nimplementing nlayoffs nof ntheir
nworkforces.---
D. nAnticipating nthat nthe nbenefits nwould noutweigh ncosts ninvolved, nan nundergraduate nstudent
npurchases nthe ncourse ntextbook. n- nAnswer n- nc
ANSWERS WITH CORRECT UPDATE
1. nIn nwhich nof nthe nfollowing ncountries nwill nthe nnational ngovernment nhave nthe ngreatest
ninfluence nwith nrespect nto nthe nnation's neconomy? nCUBA n- nAnswer n- n
2. nIn na ncommand neconomy, nthe n__________ neither nmakes nmost neconomic ndecisions nitself nor
nat nleast nstrongly ninfluences nhow nthe ndecisions nare nmade. n- nAnswer n- ngovernment
3. nBecause nof ntheir nrelatively nsmall nnational neconomies, nwhich nof nthe nfollowing nis nmost nlikely
nconsidered nto nbe nthe nmost nimportant nfactor nfor nBelgium, nKorea, nand nCanada nto ntake nfull
nadvantage nof nspecialization?
A. ndivision nof nlabour
B. ninternational ntrade
C. neconomies nof nscale
D. ncommand neconomy n- nAnswer n- nb
4. nIn na n_______________________, nmost neconomic ndecisions nabout nwhat nto nproduce, nhow nto
nproduce nit, nand nfor nwhom nto nproduce nit nare nmade nby nbuyers nand nsellers
A. nmarket-oriented neconomy
B. nmacroeconomy
C. nmicroeconomy
D. ncommand neconomy n- nAnswer n- nA
5. nWhich nof nthe nfollowing nis ngenerally naccepted nas na nvalid ncriticism nof nthe nproduction nof
nuseful ngoods nand nservices
A. ngovernment ninvolvement
B. nthe nblack nmarket
,C. nenvironmental npollution--
D. neconomic nfreedom n- nAnswer n- nc
7. nIf nmacroeconomics nlooks nat nthe neconomy nas na nwhole, nit nfocuses non nwhich nof nthe
nfollowing?
A. nhouseholds
B. nbusiness nfirms
C. nunemployed npeople
D. nthe ndivision nof nlabor n- nAnswer n- nc
8. nIn nthe n______________, nhouseholds nreceive ngoods nand nservices nand npay nfirms nfor nthem
A. nlabor nmarket
B. nfinancial ncapital nmarket
C. ngoods nand nservices nmarket--
D. nsavings nmarket n- nAnswer n- nc
9. nWhen nnations ndesire na nhealthy nmacroeconomy, nthey ntypically nfocus non nthree ngoals, none nof
nthese nbeing:
A. nlabor nmarket
B. nfinancial ncapital nmarket
C. ngoods nand nservices nmarket
D. nsavings nmarket n- nAnswer n- nc
10. nThe nbasic ndifference nbetween nmacroeconomics nand nmicroeconomics nis
A. nmicroeconomics nconcentrates non nindividual nmarkets nwhile nmacroeconomics nfocuses nprimarily
non ninternational ntrade.
B. nmicroeconomics nconcentrates non nthe nbehaviour nof nindividual nconsumers nwhile
nmacroeconomics nfocuses non nthe nbehaviour nof nfirms.
C. nmicroeconomics nconcentrates non nthe nbehaviour nof nindividual nconsumers nand nfirms nwhile
nmacroeconomics nfocuses non nthe nperformance nof nthe nentire neconomy.----
, D. nmicroeconomics nexplores nthe ncauses nof ninflation nwhile nmacroeconomics nfocuses non nthe
ncauses nof nunemployment n- nAnswer n- nc
11. nWhich nof nthe nfollowing nis nmost nlikely na ntopic nof ndiscussion nin nmacroeconomics
A. nan nincrease nin nthe nprice nof na nhamburger
B. na ndecrease nin nthe nproduction nof nDVD nplayers nby na nconsumer nelectronics ncompany
C. nan nincrease nin nthe nwage nrate npaid nto nautomobile nworkers
D. na ndecrease nin nthe nunemployment nrate n- nAnswer n- nD
Specialization
nA. nleads nto ngreater nself-sufficiency.
B. ncan nlead nto nan nincrease nin noverall nproduction.---
C. nallows nworkers nto ndevelop nskills nby nworking non na nlarge nnumber nof ntasks
D. nis nalways nthe nresult nof nan ninefficient nuse nof nresources n- nAnswer n- nb
13. nIn na nmarket-oriented neconomy, nthe namount nof na ngood nthat nis nproduced nis nprimarily
ndecided nby nthe ninteraction no
fA. nall nconsumers.
B. nbuyers nand nsellers.
C. nproducers nand ninput nsuppliers.
D. nproducers nand ngovernment nplanning ncommittees n- nAnswer n- nb
14. nWhich nof nthe nfollowing nstatements nmost nlikely nlies nwithin nthe nrealm nof nmacroeconomics
A. nAn nincrease nin nthe nprice nof nautomobiles nwill nlead nto na ndecrease nin nthe nquantity nof
nautomobiles ndemanded.
B. nDue nto nprocess ninnovations nin ncomputer nchip nmanufacturing, nthe nmarket nsupply nof
ncomputers nincreased.
C. nDue nto nan neconomic nrecession, nmanufacturing nfirms nbegan nimplementing nlayoffs nof ntheir
nworkforces.---
D. nAnticipating nthat nthe nbenefits nwould noutweigh ncosts ninvolved, nan nundergraduate nstudent
npurchases nthe ncourse ntextbook. n- nAnswer n- nc
