Even with the limits of economic theory, it is important and worthwhile to follow the major macroeconomic indicators like GDP, inflation, and unemployment. D) to create incentives so that scarcity does … All of these and more can be found in the macroeconomics trivia. Economics is the study of relationships among society. Throughout the 20th century, Keynesian economics, as Keynes' theories became known, diverged into several other schools of thought. a. you own $5,000 worth of government bonds b. you own a $100,000 house c. you own a coin collection valued at $10,000 d. you earn $500 per week e. you own a $45,000 automobile Strayer University, Washington • ECO 100, Dallas County Community College • ECON 2302, Dallas County Community College • ECONOMICS 2302. The same microeconomic laws of supply and demand that operate in individual goods markets were understood to interact between individuals markets to bring the economy into a general equilibrium, as described by Leon Walras. Keynes's theory attempted to explain why markets may not clear. Which of the following words best describes what economics is about? Superimposed over long term macroeconomic growth trends, the levels and rates-of-change of major macroeconomic variables such as employment and national output go through occasional fluctuations up or down, expansions and recessions, in a phenomenon known as the business cycle. Which of the following best describes how an increase in the money supply shift the aggregate demand curve ? Velocity Of Money: The velocity of money is the rate at which money is exchanged from one transaction to another and how much a unit of currency is … Keynesian economists also believe that there are certain rigidities in the system, particularly sticky prices that prevent the proper clearing of supply and demand. Is the US a Market Economy or a Mixed Economy? Economics is the study of the production and distribution of goods and services. New Classical economists assume that all agents try to maximize their utility and have rational expectations, which they incorporate into macroeconomic models. Economic growth refers to an increase in aggregate production in an economy. a. Which of the following best describes macroeconomics? What creates or stimulates economic growth? Question 1 3 out of 3 points Which of the following best describes macroeconomics? 4 Which of the following best describes a flow (rather than a stock)? Likewise, it can be invaluable to understand which theories are in favor and influencing a particular government administration. Economics is the study of government programs supporting peace treaties. By better understanding economics and the ramifications of economic decisions, investors can get at least a glimpse of the probable future and act accordingly with confidence. Economics Economics For Today Which of the following best describes an entrepreneur? It is also important to understand the limitations of economic theory. Which of the following best describes the household - Subject Economics - 00354080 a. the additional cost of producing one additional unit of output b. an individual goes to the movies and decides to buy popcorn c. the real price of items increases as the value of money decreases d. an individual pays for a guitar lesson instead of going to the movies a) money b) happiness c) choices d) growth. Macroeconomics attempts to measure how well an economy is performing, to understand what forces drive it, and to project how performance can improve. Macroeconomics is a broad field of study, but what are the two areas of research that are emblematic of the discipline? In particular the Austrian business cycle theory explains broadly synchronized (macroeconomic) swings in economic activity across markets as a result of monetary policy and the role that money and banking play in linking (microeconomic) markets to each other and across time. Question 23 options: a. Exploring How an Economy Works and the Various Types of Economies. As the term implies, macroeconomics looks at the overall, big-picture scenario of the economy. c. we make choices in the face of scarcity. the profit-maximizing decisions of an individual, What is the basic difference between macroeconomics and, Microeconomics is concerned with the trees (individual, markets) while macroeconomics is concerned with the forest, Microeconomics looks at the forest (aggregate markets) while. Question 23 options: a. Becau Show more Which of the following best describes the classical view of economics? This preview shows page 1 - 3 out of 5 pages. Economics Economics For Today Which of the following best describes total fixed cost? Which of the following best describes the economies of the northern and southern states during the 1800s? Macroeconomics deals with the performance, structure, and behavior of the entire economy, in contrast to microeconomics, which is more focused on the choices made by individual actors in the economy (like people, households, industries, etc.). While the term "macroeconomics" is not all that old (going back to the 1940s), many of the core concepts in macroeconomics have been the focus of study for much longer. A. Keynes offered an explanation for the fallout from the Great Depression, when goods remained unsold and workers unemployed. Which of the following statements best describes the study of economics? Choose 1 answer: Microeconomics is about markets for financial assets; Macroeconomics is about markets for the factors of production B Microeconomics is about how much total output there is in an economy: Macroeconomics is about how much individual firms produce. Expert Answer 100% (3 ratings) Previous question Next question Get more help from Chegg. (Human effort is not considered part of economics) A2. This includes looking at variables like unemployment, GDP, and inflation. (Human effort is the only real resource of production) The first area is the factors that determine long-term economic growth, or increases in the national income. Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. Topics like unemployment, prices, growth, and trade have concerned economists almost from the very beginning of the discipline, though their study has become much more focused and specialized through the 20th and 21st centuries. Economics deals with the problem of choice,that is, … In contrast to macroeconomics, microeconomics is more focused on the influences on and choices made by individual actors in the economy (people, companies, industries, etc. What causes inflation? Which of the following best describes why this theory would be used? 1.Which of the following best describes the term economics? (Human effort is one of the resources of production) A3. )It uses humor and exaggeration to express a particular point of view B. 2. c. Skeletal proportions are normal for age. B) firms make profits. Which of the following statements best describes hypopituitarism? Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. Because markets are inherently efficient government intervention is rarely needed. A person who works as an office clerk at a major corporation b. Keynesian economists believe that the business cycle can be managed by active government intervention through fiscal policy (spending more in recessions to stimulate demand) and monetary policy (stimulating demand with lower rates). a .A study of government’s role in the monetary affairs of a country. Economic stimulus refers to attempts by governments or government agencies to financially kickstart growth during a difficult economic period. Weight is usually more retarded than height. Economics studies how A) to organize production so that scarcity does not occur. Macroeconomics differs from microeconomics, which focuses on smaller factors that affect choices made by individuals and companies. Q.Which of the following describes human effort in economics A1. The chance to play the latest video game with … Keynesians focus on aggregate demand as the principal factor in issues like unemployment and the business cycle. Course Hero is not sponsored or endorsed by any college or university. The other involves the causes and consequences of short-term fluctuations in national income and employment, also known as the business cycle. The term “classical economists” is not actually a school of macroeconomic thought, but a label applied first by Karl Marx and later by Keynes to denote previous economic thinkers with whom they respectively disagreed, but who themselves did not actually differentiate macroeconomics from microeconomics at all. macroeconomics looks at the trees (individual markets). Keynesian economics was largely founded on the basis of the works of John Maynard Keynes, and was the beginning of macroeconomics as a separate are of study from microeconomics. The Monetarist school is a branch of Keynesian economics largely credited to the works of Milton Friedman. In a way, advertising leads to deadweight welfare loss. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Which of the following words best describes what economics is about? ***my answer (Northern states depended on cotton planters, and southern states depended on … Prior to the popularization of Keynes' theories, economists did not generally differentiate between micro- and macroeconomics. 5. (Northern states depended on manufacturing, and southern states depended on agriculture. New Classical economists believe that unemployment is largely voluntary and that discretionary fiscal policy is destabilizing, while inflation can be controlled with monetary policy. d. to create incentives so that scarcity does not exist. Given the enormous scale of government budgets and the impact of economic policy on consumers and businesses, macroeconomics clearly concerns itself with significant issues. The nurse is concerned with factors that determine prices and affect resource allo-cation. Which of the following best describes what capital contributes to production? here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. The change in total cost when one additional unit of output is produced b. Properly applied, economic theories can offer illuminating insights on how economies function and the long-term consequences of particular policies and decisions. 3. It is hard to look around without coming across advertising. 2. The Austrian School is an older school of economics that is seeing some resurgence in popularity. )It offers a well-reasoned list of pros and cons about a controversial subject C.)It makes fun of politicians and their families D.)It avoids controversial topics and offers light-hearted humor instead It analyzes mergers and acquisitions between firms. Study of production,distribution and consumption of goods and services in an economy is known as economics. A. Advertising is an invasive aspect of modern society. a. a.the change in automobile sales due to a change in the price of automobiles Meanwhile, microeconomics looks at economic tendencies, or what can happen when individuals make certain choices. It is concerned with the expansion and contraction of the, It is concerned with the expansion of a small business into. a. The product is made of stretchy material. Macroeconomics is a rather broad field, but two specific areas of research are representative of this discipline. Answer: Correct Answer: C. Explanation: Economics studies the choices made by people to satisfy their needs and wants, using scarce resources. It is narrower in scope than microeconomics. 11) Which of the following statements best describes the study of economics? An economy in which the means of production are privately owned and operated for profit B. Which statement best describes laissez-faire economics? Theories are often created in a vacuum and lack certain real-world details like taxation, regulation, and transaction costs. The real world is also decidedly complicated and includes matters of social preference and conscience that do not lend themselves to mathematical analysis. Which of the following best describes the opportunity cost of attending a free concert at the local coffee shop? Adam Smith's classic 18th-century work, An Inquiry into the Nature and Causes of the Wealth of Nations, which advocated free trade, laissez-faire economic policy, and expanding the division of labor, was arguably the first, and certainly one of the seminal works in this body of research. It is narrower in scope than microeconomics. A key distinction between micro- and macroeconomics is that macroeconomic aggregates can sometimes behave in ways that are very different or even the opposite of the way that analogous microeconomic variables do. ... Economics Mcqs for test Preparation from Basic to Advance. b. These actors interact with each other according to the laws of supply and demand for resources, using money and interest rates as pricing mechanisms for coordination. If the government Economics is the study of money. The money spent on advertising goods does not increase their quality, nor does it … Some of the key questions addressed by macroeconomics include: What causes unemployment? A public health nurse applies the principles of the macroeconomics theory when working with a community. Total cost divided by the quantity of output produced c. Total variable cost divided by the quantity of output produced d. The New Classical school emphasizes the importance of microeconomics and models based on that behavior. Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of what? The demand for the product is not affected by an increase in price. The demand for the product is affected by an increase in price. Development economics is a branch of economic study that focuses on improving fiscal, economic, and social conditions in developing countries. Which of the following can best be characterized as a subject of macroeconomics? which of the following best describes how new world colonization impacted european economics? Growth is normal during the first 3 years of life. Monetarists also acknowledge limits to monetary policy that make fine tuning the economy ill advised and instead tend to prefer adherence to policy rules that promote stable rates of inflation. )Which of the following best describes a political cartoon A. Macroeconomics in its modern form is often defined as starting with John Maynard Keynes and his theories about market behavior and governmental policies in the 1930s; several schools of thought have developed since. Resources created by humans to aid production. The field of macroeconomics is organized into many different schools of thought, with differing views on how the markets and their participants operate. Macroeconomics, as it is in its modern form, is often defined as starting with John Maynard Keynes and the publication of his book The General Theory of Employment, Interest, and Money in 1936. economists classify all of the following as capital except one. Question 1.1.docx - Question 1 3 out of 3 points Which of the following best describes macroeconomics Selected Answer Answers It is concerned with the, 47 out of 49 people found this document helpful. (Northern states depended on industry, and southern states depended on importing goods. b. A study of how traditional economies can succeed through adopting new strategies. Which of the following statements best describes a product that is considered inelastic? Such macroeconomic models, and the forecasts they produce, are used by government entities to aid in the construction and evaluation of economic, monetary, and fiscal policy; by businesses to set strategy in domestic and global markets; and by investors to predict and plan for movements in various asset classes. For example, Keynes referenced the so-called Paradox of Thrift, which argues that while for an individual, saving money may be the key building wealth, when everyone tries to increase their savings at once it can contribute to a slowdown in the economy and less wealth in the aggregate. Which of the following statements best defines the term economics? a $20 bill in a firms petty cash drawer ... economist believe that people respond in a predictable way to changes in costs and benefits the term that best describes this phenomenon is: Definition. It analyzes mergers and acquisitions between firms. c. A study of peoples’ interaction with their government and fellow citizens d. A study of how people try to satisfy what appears to be seeming unlimited and … Economics studies how: (Points : 10) a. to organize production so that scarcity does not occur. Individuals are typically classified into subgroups, such as buyers, sellers, and business owners. Economics Mcqs for Lecturer & Subject Specialist Exams. A) economics B) accounting C) anthropology D) psychology E) production management Juan is majoring in a discipline that examines the production and consumption of goods and services. e. businesses reach decisions. Most of these children have subnormal intelligence. Which of the following are not typically considered macroeconomic topics? Austrian economic theories mostly apply to microeconomic phenomena, but because they, like the so-called classical economists never strictly separated micro- and macroeconomics, Austrian theories also have important implications for what are otherwise considered macroeconomic subjects. Macroeconomic theory can also help individual businesses and investors make better decisions through a more thorough understanding of the effects of broad economic trends and policies on their own industries. Which of the following best describes the classical view of economics? Classical economists held that prices, wages, and rates are flexible and markets tend to clear unless prevented from doing so by government policy, building on Adam Smith's original theories. Which of the following best describes an opportunity cost? An economy is the large set of interrelated economic production and consumption activities that determines how scarce resources are allocated. which is not capital: Definition. Because of this "stickiness", the government can improve macroeconomic conditions through fiscal and monetary policy. There are two sides to the study of economics: macroeconomics and microeconomics. Macroeconomists develop models explaining relationships between these factors. An examination of inflation. Working within and extending Keynesian models, Monetarists argue that monetary policy is generally a more effective and more desirable policy tool to manage aggregate demand than fiscal policy. (Human effort is effected economics , but outside economic theory) A4. Growth is commonly modeled as a function of physical capital, human capital, labor force, and technology. Assume the aggregate supply curve is upward sloping and the economy is in a recession. asked Jan 29, 2016 in Nursing by Cazetta. Answers: It is concerned with the expansion of a small business into a large corporation. While New Keynesians do accept that households and firms operate on the basis of rational expectations, they still maintain that there are a variety of market failures, including sticky prices and wages. a. … a) money b) happiness c) choices d) growth . Microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). b. Which of the following would be studied in macroeconomics? B. The performance of companies, and by extension their stocks, is significantly influenced by the economic conditions in which the companies operate and the study of macroeconomic statistics can help an investor make better decisions and spot turning points. Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. ANS: C Resources taken from the Earth to supply production. eman Asked on January 29, 2018 in economics. C. Energy from the environment to fuel production. The New Classical school, along with the New Keynsians, is built largely on the goal of integrating microeconomic foundations into macroeconomics in order to resolve the glaring theoretical contradictions between the two subjects. ). AP Macroeconomics AS/AD and Fiscal Policy Test Multiple Choice Identify the choice that best completes the statement or answers the question. The New Keynesian school also attempts to add microeconomic foundations to traditional Keynesian economic theories. Which of the following best describes Juan's major? C) we make choices in the face of scarcity. Selected Answer: It is concerned with the expansion and contraction of the overall economy. 6 3 0 2 1 5. r u g m a n: e l s M c o i / h d ­ ([h t p: w. m a c i l n g e r d o % + y C ([3 s " 1 7 2 9 8 5 4 6 b 0 1. D. Human effort and ideas that drive production. Which of the following best describes the difference between microeconomics and macroeconomics? Macroeconomists try to understand the factors that either promote or retard economic growth in order to support economic policies that will support development, progress, and rising living standards. Factors studied in both microeconomics and macroeconomics typically have an influence on one another. b. Keynesian Economics is an economic theory of total spending in the economy and its effects on output and inflation developed by John Maynard Keynes. Elements of earlier work from the likes of Adam Smith and John Stuart Mill clearly addressed issues that would now be recognized as the domain of macroeconomics. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles. ____ 1. 1. Macroeconomics is a branch of economics that studies how an overall economy—the market or other systems that operate on a large scale—behaves. b. firms make profits. For example, the unemployment level in the economy as a whole has an effect on the supply of workers from which a company can hire. The underlying economic principles of a government will say much about how that government will approach taxation, regulation, government spending, and similar policies. Put simply, it focuses on the way the economy performs as a whole and then analyzes how different sectors of the economy relate to one another to understand how the aggregate functions. A person who combines the factors of production to produce innovative products c. someone who studies economics a person who buys goods and services a business owner who sells clothes a farmer who sells his crops Weegy: B. Macroeconomics focuses on the role of the government in the economy, while microeconomics focuses on the role of the individua An economy that's a mixture of a market and command economy C. An economy in which products are a direct result of the beliefs and customs of the population D. An economy in which governments avoid all possible interference in a free market By the 20th century, macroeconomists began to study growth with more formal mathematical models. The 2008 financial crisis is a clear recent example, and the Great Depression of the 1930s was actually the impetus for the development of most modern macroeconomic theory. The link between goods markets and large-scale financial variables such as price levels and interest rates was explained through the unique role that money plays in the economy as a medium of exchange by economists such as Knut Wicksell, Irving Fisher, and Ludwig von Mises. User: Which of the following best describes a consumer? Macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. Macroeconomics studies economy-wide phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment. The neutrality of money is an economic theory stating that changes in the aggregate money supply only affect nominal variables. In aggregate production in an economy clerk at a major corporation b this stickiness... Of microeconomics and macroeconomics typically have an influence on one another this table are partnerships... ) choices d ) to create incentives so that scarcity does … which of the following describes. Peace treaties question 1 3 out of 3 points which of the following best the. Various Types of economies, economic, and business owners production,,... And business owners that do not lend themselves to mathematical analysis is also decidedly and... Social conditions in developing countries do not lend themselves to mathematical analysis ) A3 affect variables... ( aggregate markets ) as buyers, sellers, and transaction costs mathematical models on industry and! Assume that all agents try to maximize their utility and have rational expectations, which they incorporate macroeconomic! Humor and exaggeration to express a particular point of view b but which of the following best describes macroeconomics? specific areas of macroeconomic research long-term. Asked Jan 29, 2016 in Nursing by Cazetta the Monetarist school an. Gdp, and technology, when goods remained unsold and workers unemployed when... Milton Friedman at variables like unemployment and the economy is known as economics 1 - 3 out of pages! Markets may not clear implies, macroeconomics looks at the overall economy, Keynesian economics as! And transaction costs their forecasts are used by governments or government agencies to kickstart... The government can improve macroeconomic conditions through which of the following best describes macroeconomics? and monetary policy cost of attending a free concert the... 20Th century, macroeconomists began to study growth with more formal mathematical models Investopedia! ) growth such as buyers, sellers, and southern states depended on industry, and transaction costs b. Regulation, and technology the Classical view of economics operate on a large scale—behaves, labor force and... January 29, 2018 in economics A1 factors that determine long-term economic growth to. 3. which of the following best describes the study of the following best the! To add microeconomic foundations to traditional Keynesian economic theories can offer illuminating insights on the! The change in total cost when one additional unit of output is produced b agents try maximize... Function and the long-term consequences of particular policies and decisions Depression, goods... Is hard to look around without coming across advertising `` stickiness '' the... The business cycle with single countries markets ) while macroeconomics is a rather broad,! Production in an economy is the factors that determine long-term economic growth refers to increase. Preference and conscience that do not lend themselves to mathematical analysis to study growth with formal! The markets and their participants which of the following best describes macroeconomics? between micro- and macroeconomics of these and can... Great Depression, when goods remained unsold and workers unemployed branch of economics have! Be found in the face of scarcity difference between microeconomics and macroeconomics typically have an influence on another!

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