AnswersOC27 Economics-2102310-Sem-MeadowsUnit Test

1.6 Introduction to Macroeconomics Answers

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The circular flow model examines interactions between which sectors of the economy? Select THREE answers.privategovernmentforeigntechhouseholds

A
private
B
government
C
foreign
D
tech
E
households
2
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Which statement best describes why a government’s actions are important in macroeconomics? Check all that apply.Government controls industry through policy.Government is both a consumer and a producer.Government can prevent changes and challenges.Government can use policy to influence the economy.Government can accurately predict economic trends.

A
Government controls industry through policy.
B
Government is both a consumer and a producer.
C
Government can prevent changes and challenges.
D
Government can use policy to influence the economy.
E
Government can accurately predict economic trends.
3

Which best describes what occurs in the product market?

A
the exchange of labor for capital
B
the exchange of goods and services for factors of production
C
the exchange of goods and services for money
D
the exchange of money for factors of production
4

A long-run equilibrium occurs when long-run aggregate supply and aggregate demand meet. What does having long-run equilibrium indicate about a society?

A
The society’s supply and demand have stagnated.
B
The society is using all of its resources efficiently.
C
The society’s needs are being fully met.
D
The society is not using all of its resources effectively.
5

In macroeconomics, the economy can best be understood through the use of

A
money.
B
models.
C
pricing.
D
debates.
6

Which statement best describes the circular flow model?

A
The model represents the movement of money and resources throughout the economy.
B
The model represents the interactions within sectors.
C
The model represents the flow of goods and services abroad.
D
The model represents the changing relationships between actors.
7

The circular flow model examines interactions between which sectors of the economy? Select THREE answers.

A
private
B
government
C
foreign
D
tech
E
households
8

This is a graph showing price and total output in the short and long run. According to this graph, how does supply behave in the long run?

Question illustration
A
Output remains constant.
B
Output increases.
C
Output cannot be predicted.
D
Output decreases.
9

Which best describes the purpose served by economic models within an economic system?

A
Models identify patterns.
B
Models determine the business cycle.
C
Models control change.
D
Models define global demand.
10

Which best describes what injector factors bring to an economic system?

A
factors of production
B
imports
C
consumers
D
money
11

The aggregate is

A
a type of economic system.
B
the total number of goods demanded or supplied.
C
a form of revenue.
D
the total profit made on sales.
12

Which best describes what occurs in the product market?

A
the exchange of labor for capital
B
the exchange of goods and services for factors of production
C
the exchange of goods and services for money
D
the exchange of money for factors of production
13

In microeconomics, what occurs when equilibrium is reached?

A
Prices decline.
B
Prices increase.
C
Prices are set.
D
Prices fluctuate.
14

Which body or group is most able to use money to influence the economy?

A
government
B
suppliers
C
firms
D
producers
15

Which best describes the purpose served by economic models within an economic system?

A
Models identify patterns.
B
Models determine the business cycle.
C
Models control change.
D
Models define global demand.
16

Why are imports, which bring goods into a country, considered a leakage factor?

A
Imports do not generate domestic income.
B
Domestic industry loses ground as imports increase.
C
Imports are taxed heavily, which is a secondary leakage factor.
D
The money paid to producers of imports leaves the country.
17

Economic interactions involving which of the following would most likely be studied in macroeconomics?

A
a family’s finances
B
trade at a duty-free shop on the U.S.-Canadian border
C
International Monetary Fund policy
D
a small company’s supply contract for a local town
18

Which best describes what injector factors bring to an economic system?

A
factors of production
B
imports
C
consumers
D
money
19

What is the relationship between aggregate demand and the price level?

A
They are inversely related.
B
They are directly related.
C
They are unrelated.
D
They fluctuate randomly.
20

The circular flow model examines interactions between which two groups?

A
households and firms
B
households and consumers
C
firms and producers
D
firms and government

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