Which is the primary focus of study in macroeconomics?
a. An industry
b. The national economy
c. A business firm
d. A household
Ans: b. The national economy
You might also like to view...
Suppose unregulated production of pesticides results in an equilibrium price and quantity of $400 and 1,000 tons per day, respectively, and a marginal external cost of $10 a ton
a) If the government were to eliminate the external cost by using taxes, what should the tax equal? b) Would the government action described above affect the quantity of pesticides produced? If yes, how? If no, why not?
Jennifer lives in two periods. In the first period, her income is fixed at $72,000; in the second, she is gets a 4% raise in her income. She can borrow and save at the market interest rate of 5 percent.
(A) Sketch her intertemporal budget constraint. (B) Suppose that Jennifer is unable to lend at any rate of interest, although she can still borrow at 5 percent. Sketch her new intertemporal budget constraint.
The BP curve is upward sloping if assets are perfectly substitutable
Indicate whether the statement is true or false
The faster economic growth is, the
A) steeper the slope of the production possibilities curve. B) closer to the origin the production possibilities curve becomes. C) more bowed the production possibilities curve becomes. D) farther the production possibilities curve shifts out.