Economics Practice Quiz 115

Q1.Which of the following best describes the scope of macroeconomics?

A. It focuses on individual economic units B. It examines aggregate economic variables C. It studies only government policies D. It analyzes price determination in a single market

Q2.What does the representative good in macroeconomics reflect?

A. Only the price level of the economy B. Only the employment level of the economy C. The general price and employment level of the economy D. The production level of a specific sector

Q3.When prices are going up, what is this called?

A. Depression B. Inflation C. Recession D. Stagnation

Q4.When employment and production levels are going down, what is this called?

A. Inflation B. Boom C. Depression D. Expansion

Q5.Why does macroeconomics sometimes depart from using a single representative good?

A. Because it is too complex B. Because the economy is best seen as composed of distinct sectors C. Because a single good cannot represent any attributes D. Because all goods are identical

Q6.Which two sectors of the economy are mentioned as examples of interdependence or rivalry?

A. Industry and services B. Agriculture and industry C. Household and business D. Government and foreign

Q7.Which three sectors are mentioned as distinct sectors in a democratic set-up?

A. Agriculture, industry, services B. Household, business, government C. Public, private, joint D. Primary, secondary, tertiary

Q8.What is a potential drawback of focusing on a representative good in macroeconomics?

A. It makes analysis too complex B. It may overlook vital distinctive characteristics of individual goods C. It increases the number of variables D. It leads to inflation

Q9.What example is given of a distinctive characteristic that might be overlooked when using a single category of labour?

A. The labour of a farmer vs. a factory worker B. The labour of a manager vs. an accountant C. The labour of a teacher vs. a doctor D. The labour of a skilled vs. unskilled worker

Q10.Instead of a single representative good, what three general kinds of commodities are suggested as representatives?

A. Agricultural goods, industrial goods, and services B. Consumer goods, capital goods, and intermediate goods C. Durable goods, non-durable goods, and perishable goods D. Raw materials, finished goods, and semi-finished goods

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Economics Practice Quiz 115