Macroeconomics focuses on: the decisions and behaviors of sellers in specific ma

Question

Macroeconomics focuses on:

the decisions and behaviors of sellers in specific markets.

the decisions and behaviors of buyers in specific markets.

economic aggregates, such as unemployment, inflation, and economic growth.

how government policy should be used to decide what and how to produce.

5 points   

QUESTION 2

When there is scarcity, wants and needs exceed the resources available to satisfy them. Therefore:

decisions must be made about how to allocate limited resources among competing uses.

government must identify areas of greatest need and direct resources to those areas.

the economy is not able to operate at a point on the production possibilities frontier.

all societies in the world must rely on free market forces to determine what and how to produce.

5 points   

QUESTION 3

“The government should take action to decrease total spending in the economy when the inflation rate rises” is an example of:

the ceteris paribus assumption.

a positive macroeconomic statement.

laissez-faire policy.

a normative macroeconomic statement.

5 points   

QUESTION 4

Assuming that because an increase in government spending on health care is beneficial to some people in the economy it must necessarily be beneficial to all people in the economy is an example of the:

ceteris paribus assumption.

fallacy of division.

fallacy of composition.

fallacy of false cause.

5 points   

QUESTION 5

An example of capital, as the term is used in a principles of macroeconomics course, is:

a U.S. government savings bond.

water and timber in undeveloped areas of the country.

a start-up company’s contract with a venture capital firm.

machines used to produce automobiles.

5 points   

QUESTION 6

When Sue increased the number of hours she worked each week, she had to decrease the number of hours she spent studying for her college classes. As a result, some of her grades went down. This best represents the concept of:

macroeconomics.

the fallacy of false cause.

opportunity cost.

normative economics.

5 points   

QUESTION 7

In order to move from PPF1 to PPF2, the economy represented by the graph below needs:

to stop using inefficient production methods and start using efficient production methods.

an increase in the resources and/or technology used to produce both consumer and capital goods.

to reduce the rate of unemployment.

an increase in current consumption and a decrease in the production of capital goods.

5 points   

QUESTION 8

If the economy represented by the graph below is on PPF1, production is efficient at point(s):

A only.

B and C.

D and E.

F only.

5 points   

QUESTION 9

In the simple circular flow model:

households are demanders in resource markets and suppliers in product markets.

households are demanders in both resource and product markets.

businesses are demanders in resource markets and suppliers in product markets.

businesses are demanders in both resource and product markets.

5 points   

QUESTION 10

Market economies are characterized by all of the following except:

private property rights.

decentralized decision-making.

government direction of market activity.

voluntary exchange between individual buyers and sellers.

5 points   

QUESTION 11

Points inside a production possibilities frontier imply that:

resources are being used efficiently and are fully employed.

resources are being used inefficiently or are unemployed.

the economy needs additional resources in order to produce more goods.

the economy is not capable of future economic growth.

5 points   

QUESTION 12

According to the law of demand, an increase in the price of gasoline leads to:

a decrease in the demand for gasoline, ceteris paribus.

an increase in the demand for gasoline, ceteris paribus.

a decrease in the quantity demanded of gasoline, ceteris paribus.

an increase in the quantity demanded of gasoline, ceteris paribus.

5 points   

QUESTION 13

Based on the graph below, a price of $7 per rose results in:

a shortage of 10 roses.

a shortage of 20 roses.

a surplus of 10 roses.

a surplus of 20 roses.

5 points   

QUESTION 14

In the graph below, quantity demanded is equal to quantity supplied when the price per rose is:

$4.

$5.

$6.

$7.

5 points   

QUESTION 15

Suppose the restaurant owner tells the rose seller that she cannot charge a price higher than $4 per rose. Based on the graph below, the $4 per rose price limit acts as an effective _____ and would result in a _____ of roses.

price floor; shortage

price floor; surplus

price ceiling; shortage

price ceiling; surplus

5 points   

QUESTION 16

If the demand for apartments near campus increases, ceteris paribus, basic supply and demand analysis predicts that the equilibrium price of apartments near campus will:

increase and equilibrium quantity will also increase.

decrease and equilibrium quantity will also decrease.

increase, but equilibrium quantity will decrease.

decrease, but equilibrium quantity will increase.

5 points   

QUESTION 17

Ceteris paribus, an increase in the supply of cell phones was most likely caused by:

a decrease in the price of cell phones.

an increase in the price of cell phones.

a decrease in the cost of producing cell phones.

an increase in the cost of producing cell phones.

5 points   

QUESTION 18

If cotton clothing becomes more popular at the same time that a hurricane destroys a portion of the cotton crop, then, in the market for cotton clothing (ceteris paribus):

both equilibrium price and quantity will increase.

equilibrium quantity will increase and equilibrium price will decrease.

equilibrium quantity will decrease but the change in equilibrium price cannot be determined from the information given.

equilibrium price will increase but the change in equilibrium quantity cannot be determined from the information given.

5 points   

QUESTION 19

The demand for restaurant meals will most likely decrease if:

an economic downturn causes a decrease in consumer income.

consumers enjoy dining out more than they enjoy dining at home.

restaurants increase the services they offer to customers.

the average price of a restaurant meal increases.

QUESTION 20

To be counted as unemployed, a person must be:

without a job and part of the civilian population.

without a job, currently available for work, and actively seeking work.

included in both the civilian population and the institutional population.

included in the labor force and have worked in the past 4 weeks.

the decisions and behaviors of sellers in specific markets.

the decisions and behaviors of buyers in specific markets.

economic aggregates, such as unemployment, inflation, and economic growth.

how government policy should be used to decide what and how to produce.

Explanation / Answer

1)

economic aggregates, such as unemployment, inflation, and economic growth

As we know that macroeconomics is study of interrelationship and links between various economic factors which determine economic growth and economy enviornment.

we do oonly first question as per chegg instructions.

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