Subject matter of macroeconomics and key macroeconomic concepts

13. Macroeconomics is concerned with

(A) The level of output of goods and services

(B) The general level of prices

(C) The growth of real output

(D) The level of employment in the economy

(E) All the above

14. One of the primary issues covered within macroeconomics is

(A) The behaviour of households.

(B) The pricing decisions of a firm.

(C) The purchasing decisions of a consumer.

(D) Inflation.

(E) Price discrimination.

15. Macroeconomics is based on microeconomics for all of the following reasons except:

(A) When we study the economy as a whole, we must consider the decisions of

individual economic actors.

2. Aggregate variables are simply the sum of variables describing many individual decisions.

3. Macroeconomic decision makers, when they make their choices, must maximize utility functions.

4. To understand the determinants of aggregate investmentБ, we must think about a firm deciding whether to build a new factory.

16. Which of the following is not a reason to study macroeconomics?

(A) To gain cultural literacy.

(B) To understand how macroeconomic trends affect you personally.

(C) To exercise your responsibility as a citizen.

4. To learn how to become wealthy.

17. Macroeconomists study all of the following issues except:

(A) The determinants of inflation.

(B) The relative market shares of General Motors and Ford.

(C) The growth of total production in the United States.

(D) The amount of imports and exports between the United States and Japan.

18. Macroeconomics does not try to answer the question of:

(A) Why are incomes higher today than they were in 1950.

(B) What is the rate of return to education.

(C) Why do some countries have high rates of inflation.

(D) What causes recessions and depressions.

19. All of the following terms are types of macroeconomics data except:

(A) The price of an IBM computer.

(B) The growth rate of real GDP.

(C) The inflation rate.

(D) The unemployment rate.

20. Which of the following is not one of the key variables in macroeconomics?

(A) The interest rate.

(B) The unemployment rate.

(C) The inflation rate.

(D) The level of the production in the steel industry.

21. Which of the following is not one of the key variables in macroeconomics?

(A) The cost of education.

(B) The interest rate.

(C) The inflation rate.

(D) The exchange rate.

22. Which of the following does not refer to macroeconomics?

(A) The study of aggregate economic activity.

(B) The study of the economic behavior of individual decision-making units such as consumers, resource owners, and business firms.

(C) The study of the causes of (and policies to remedy) unemployment.

(D) The study of the causes of inflation.

23. The macroeconomic problem that affects individuals most directly and severely is

1. Balance of payments.

2. Unemployment.

3. Low savings.

4. Low investment.

5. Low interest rate.

24. A typical trend during a recession is that:

1. The unemployment rate falls.

2. The popularity of the incumbent president rises.

3. Incomes fall.

4. The inflation rate rises.

5. Inventory accumulation stops.

25. Which of the following is not an important variable in growth accounting calculations?