A. The study of very large industries is a topic within macroeconomics
B. Macroeconomics is concerned with economy-wide phenomena
C. Microeconomics is a building block for macroeconomics
D. Microeconomics and macroeconomics cannot be entirely separated
Application of Economics
Which of the following will not shift a country’s production possibilities frontier outward ?
A. an advance in technology
B. an increase in the labor force
C. an increase in the capital stock
D. a reduction in unemployment
Which of the following statements is normative ?
A. Large government deficits cause an economy to grow more slowly
B. People work harder if the wage is higher
C. The unemployment rate should be lower
D. Printing too much money causes inflation
Positive statements are ?
A. Macroeconomic
B. Microeconomics
C. statements of description that can be tested
D. Statements of prescription that involve value judgments.
Which of the following issues is related to microeconomics ?
A. the impact of oil prices on car production
B. The impact of money on inflation
C. The impact of technology on economics growth
D. The impact of the deficit on saving
Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?
A. None of these answers
B. Disagree because they have different scientific judgments
C. really don’t disagree at all. It just appears that they disagree
D. disagree because they have different values