The basic difference between macroeconomics and microeconomics is:
A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
B. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms.
C. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
Answer: C
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To maximize profits, a perfectly competitive firm should do all the following except:
A. produce until marginal cost equals price. B. produce until per-unit profits are maximized. C. produce until marginal revenue equals marginal cost. D. produce until economic profits are maximized.
A discouraged worker is someone who
A. is employed. B. is unemployed. C. is not in the labor force. D. has been fired.
Among the most important indicators used by the NBER Business Cycle Dating Committee to determine the beginning of the 2007-2009 recession were all of the following except:
A. industrial production. B. total sales in manufacturing, wholesale trade, and retail trade. C. nonfarm employment. D. the consumer price index.
Refer to the above diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?
A. The use of the economy's resources in a more efficient way
B. An increase in the spending of business and consumers
C. An increase in government purchase of the economy's output
D. An increase in the quantity and quality of labor resources