gdp - 1 Macroeconomists study a decisions of households and...

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1. Macroeconomists study a. decisions of households and firms. b. economy-wide phenomena. c. the interaction of households and firms. d. regulations of firms and unions. 2. Which of the following headlines would be more closely related to what microeconomists study than what  macroeconomists study? a. Unemployment rate rises from 5 percent to 5.5 percent. b. Real GDP grows by 3.1 percent in the third quarter. c. Retail sales at stores show large gains. d. The price of oranges rises after an early frost. 3. Macroeconomics includes the study of topics such as a. national output, the inflation rate, and the trade deficit. b. the price of Cisco stock, wage differences between genders, and antitrust laws. c. differences in market structure, and how consumers maximize utility. d. None of the above are correct. 4. 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. not particularly useful in either macroeconomic or microeconomic analysis. d. central to macroeconomic analysis as well as to microeconomic analysis.
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5. Which of the following is correct for an economy? a. Income is greater than production. b. Production is greater than income. c. Income always equals production. d. Income equals production only when saving is zero. 6. The simple circular-flow diagram illustrates that a. production generates income so that income and production are the same. b. the economy’s income exceeds its production. c. the production of an economy exceeds its income. d. None of the above are necessarily correct. 7. Over the last few decades Americans have chosen to cook less at home and eat more at restaurants. This change  in behavior, by itself, a. increased measured GDP. b. reduced measured GDP. c. did not affect measured GDP. d. affected measured GDP only to the extent that people eat more at restaurants than at home 8. If Susan decides to change the oil in her car herself instead of having Speedy Lube change the oil for her GDP a. necessarily rises. b. necessarily falls. c. will be unaffected because the same service is produced in either case.
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d. will be unaffected because car maintenance is not included in GDP. 9. Which of the following is correct? a. The value of all intermediate goods and final goods are included in GDP. b.
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gdp - 1 Macroeconomists study a decisions of households and...

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