Question 1

The process of steady increase in the quantity and quality of goods and services the economy can produce is called:

Accepted Answer

A) aggregation. 
B) globalization. 
C) production. 
D) economic growth. 
A) aggregation. 
B) globalization. 
C) production. 
D) economic growth.

Question 2

If Country A and Country B have the same total output, then the standard of living in these two countries can be different depending on:

Accepted Answer

A) their respective political systems. 
B) their respective inflation rates. 
C) their relative geographic size. 
D) population size. 
A) their respective political systems. 
B) their respective inflation rates. 
C) their relative geographic size. 
D) population size.

Question 3

If living standards in a country, as measured by output per person, decrease, then total output must have:

Accepted Answer

A) increased more rapidly than population increased. 
B) increased at the same rate that population increased. 
C) increased more slowly than population increased. 
D) decreased more slowly than population decreased. 
A) increased more rapidly than population increased. 
B) increased at the same rate that population increased. 
C) increased more slowly than population increased. 
D) decreased more slowly than population decreased.

Question 4

Macroeconomists would be most likely to study which of the following?

Accepted Answer

A) Average annual earnings of lawyers 
B) Average annual earnings of doctors 
C) Average annual earnings of self-employed workers 
D) Average annual earnings of all employed workers in the United States 
A) Average annual earnings of lawyers 
B) Average annual earnings of doctors 
C) Average annual earnings of self-employed workers 
D) Average annual earnings of all employed workers in the United States

Question 5

The growth of total output in the United States since 1929 has been:

Accepted Answer

A) rapid and smooth. 
B) slow with fluctuations. 
C) slow and steady. 
D) rapid but with fluctuations. 
A) rapid and smooth. 
B) slow with fluctuations. 
C) slow and steady. 
D) rapid but with fluctuations.

Question 6

Output per worker must be ________ output per person.

Accepted Answer

A) greater than or equal to 
B) less than or equal to 
C) no more than half the size of 
D) equal to 
A) greater than or equal to 
B) less than or equal to 
C) no more than half the size of 
D) equal to

Question 7

________ policy focuses on the nation's money supply, while ________ policy focuses on the government's budget.

Accepted Answer

A) Monetary; structural 
B) Fiscal; structural 
C) Monetary; fiscal 
D) Fiscal; monetary 
A) Monetary; structural 
B) Fiscal; structural 
C) Monetary; fiscal 
D) Fiscal; monetary

Question 8

Macroeconomists are more likely than microeconomists to deal with:

Accepted Answer

A) positive analysis. 
B) aggregation. 
C) the scarcity principle. 
D) individual firms. 
A) positive analysis. 
B) aggregation. 
C) the scarcity principle. 
D) individual firms.

Question 9

The country of Southland produced $2,000 billion of output in one year. The population of Southland was 100 million, of whom 60 million were employed. What was average labor productivity in Southland?

Accepted Answer

A) $20 
B) $33 
C) $20,000 
D) $33,333 
A) $20 
B) $33 
C) $20,000 
D) $33,333

Question 10

In 2016 the United States exported approximately ________ percent of all goods and services produced in the country.

Accepted Answer

A) 3 
B) 8 
C) 12 
D) 20 
A) 3 
B) 8 
C) 12 
D) 20

Question 11

Structural policy refers to:

Accepted Answer

A) decisions to determine the government's budget. 
B) policy directed toward increasing exports and reducing imports. 
C) the determination of the nation's money supply. 
D) government policies aimed at changing the underlying structure or institutions of the economy. 
A) decisions to determine the government's budget. 
B) policy directed toward increasing exports and reducing imports. 
C) the determination of the nation's money supply. 
D) government policies aimed at changing the underlying structure or institutions of the economy.

Question 12

All of the following statements are correct EXCEPT:

Accepted Answer

A) Economies grow steadily over time. 
B) There are unemployed people even during expansions. 
C) Unemployment increases during recessions. 
D) A trade surplus exists when a country exports more than it imports. 
A) Economies grow steadily over time. 
B) There are unemployed people even during expansions. 
C) Unemployment increases during recessions. 
D) A trade surplus exists when a country exports more than it imports.

Question 13

The country of Northland produced $1,000 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labor productivity in Northland?

Accepted Answer

A) $20 
B) $33 
C) $20,000 
D) $33,333 
A) $20 
B) $33 
C) $20,000 
D) $33,333

Question 14

All of the following are examples of positive statements EXCEPT:

Accepted Answer

A) Tax revenues increase as output per person increases. 
B) Growth in an economy generates a budget surplus. 
C) As output per person increases access to consumer goods increases. 
D) High rates of economic growth are undesirable because of the destruction caused to the environment. 
A) Tax revenues increase as output per person increases. 
B) Growth in an economy generates a budget surplus. 
C) As output per person increases access to consumer goods increases. 
D) High rates of economic growth are undesirable because of the destruction caused to the environment.

Question 15

In Econland total output is $6 billion, population equals 250,000 people, and, of these, 200,000 are employed workers. Output per person in Econland equals ________ and average labor productivity equals ________.

Accepted Answer

A) $30,000; $24,000 
B) $24,000; $30,000 
C) $30,000; $30,000 
D) $24,000; $24,000 
A) $30,000; $24,000 
B) $24,000; $30,000 
C) $30,000; $30,000 
D) $24,000; $24,000

Question 16

Government actions designed to affect the performance of the economy as a whole are called ________ policies.

Accepted Answer

A) global 
B) microeconomic 
C) macroeconomic 
D) social 
A) global 
B) microeconomic 
C) macroeconomic 
D) social

Question 17

The unemployment rate is the:

Accepted Answer

A) number of workers unemployed. 
B) number of workers in the labor force. 
C) percentage of the population that is out of work. 
D) percentage of the labor force that is out of work. 
A) number of workers unemployed. 
B) number of workers in the labor force. 
C) percentage of the population that is out of work. 
D) percentage of the labor force that is out of work.

Question 18

The determination of the nation's money supply is called:

Accepted Answer

A) structural policy. 
B) trade policy. 
C) monetary policy. 
D) fiscal policy. 
A) structural policy. 
B) trade policy. 
C) monetary policy. 
D) fiscal policy.

Question 19

If tax revenues equal 20 percent of total output and government expenditures equal 25 percent of total output, then there is a:

Accepted Answer

A) government budget surplus. 
B) trade surplus. 
C) government budget deficit. 
D) trade deficit. 
A) government budget surplus. 
B) trade surplus. 
C) government budget deficit. 
D) trade deficit.

Question 20

The Great Depression:

Accepted Answer

A) occurred only in the United States. 
B) resulted in the development of microeconomics. 
C) was a period of low production and high unemployment. 
D) ended a few months after the stock market crash of 1929. 
A) occurred only in the United States. 
B) resulted in the development of microeconomics. 
C) was a period of low production and high unemployment. 
D) ended a few months after the stock market crash of 1929.

Exam 16: Macroeconomics: The Birds Eye View of the Economy

The process of steady increase in the quantity and quality of goods and services the economy can produce is called:

If Country A and Country B have the same total output, then the standard of living in these two countries can be different depending on:

If living standards in a country, as measured by output per person, decrease, then total output must have:

Macroeconomists would be most likely to study which of the following?

The growth of total output in the United States since 1929 has been:

Output per worker must be ________ output per person.

________ policy focuses on the nation's money supply, while ________ policy focuses on the government's budget.

Macroeconomists are more likely than microeconomists to deal with:

The country of Southland produced $2,000 billion of output in one year. The population of Southland was 100 million, of whom 60 million were employed. What was average labor productivity in Southland?

In 2016 the United States exported approximately ________ percent of all goods and services produced in the country.

Structural policy refers to:

All of the following statements are correct EXCEPT:

The country of Northland produced $1,000 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labor productivity in Northland?

All of the following are examples of positive statements EXCEPT:

In Econland total output is $6 billion, population equals 250,000 people, and, of these, 200,000 are employed workers. Output per person in Econland equals ________ and average labor productivity equals ________.

Government actions designed to affect the performance of the economy as a whole are called ________ policies.

The unemployment rate is the:

The determination of the nation's money supply is called:

If tax revenues equal 20 percent of total output and government expenditures equal 25 percent of total output, then there is a:

The Great Depression:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

policy focuses on the nation's money supply, while policy focuses on the government's budget.

In Econland total output is $6 billion, population equals 250,000 people, and, of these, 200,000 are employed workers. Output per person in Econland equals and average labor productivity equals .