AnswersPersonal Finance and EconomicsIntroduction to Macroeconomics

Introduction to Macroeconomics — Quiz Answers

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1
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The aggregate is

A
a form of revenue.
B
the total number of goods demanded or supplied.
C
the total profit made on sales.
D
a type of economic system.
2
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The circular flow model examines interactions between which two groups?

A
households and firms
B
firms and government
C
households and consumers
D
firms and producers
3

In microeconomics, what occurs when equilibrium is reached?

A
Prices increase.
B
Prices decline.
C
Prices fluctuate.
D
Prices are set.
4

In microeconomics, price helps determine both quantity supplied and quantity demanded. Which other factors can impact each by causing a shift to occur?

A
Quantity supplied is determined by production costs, and quantity demanded is determined by desire for the product.
B
Quantity supplied is determined by consumer behavior, and quantity demanded is determined by aggregate demand.
C
Quantity supplied is determined by production costs, and quantity demanded is determined by producer behavior.
D
Quantity supplied is determined by producer behavior, and quantity demanded is determined by desire for the product.
6

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 is using all of its resources efficiently.
B
The society’s needs are being fully met.
C
The society’s supply and demand have stagnated.
D
The society is not using all of its resources effectively.
8

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

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

Which best describes what occurs in the product market?

A
the exchange of labor for capital
B
the exchange of goods and services for money
C
the exchange of money for factors of production
D
the exchange of goods and services for factors of production
11

In microeconomics, what occurs when equilibrium is reached?

A
Prices fluctuate.
B
Prices are set.
C
Prices decline.
D
Prices increase.
12

In microeconomics, price helps determine both quantity supplied and quantity demanded. Which other factors can impact each by causing a shift to occur?

A
Quantity supplied is determined by producer behavior, and quantity demanded is determined by desire for the product.
B
Quantity supplied is determined by consumer behavior, and quantity demanded is determined by aggregate demand.
C
Quantity supplied is determined by production costs, and quantity demanded is determined by desire for the product.
D
Quantity supplied is determined by production costs, and quantity demanded is determined by producer behavior.
13

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

A
Models define global demand.
B
Models control change.
C
Models determine the business cycle.
D
Models identify patterns.
15

The circular flow model examines interactions between which two groups?

A
firms and producers
B
households and consumers
C
firms and government
D
households and firms
16

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 is not using all of its resources effectively.
B
The society’s supply and demand have stagnated.
C
The society’s needs are being fully met.
D
The society is using all of its resources efficiently.
17

The aggregate is

A
the total profit made on sales.
B
a type of economic system.
C
the total number of goods demanded or supplied.
D
a form of revenue.
18

The aggregate is

A
the total profit made on sales.
B
a type of economic system.
C
the total number of goods demanded or supplied.
D
a form of revenue.
20

The circular flow model examines interactions between which two groups?

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

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