How does the study of microeconomics differ from that of macroeconomics? Give one example each of an issue studied in microeconomics and in macroeconomics
What will be an ideal response?
Microeconomics is the study of how household and businesses make choices, how they interact in markets, and how the government attempts to influence their choices while macroeconomics is the study of the economy as a whole, including topics like unemployment, inflation and economic growth. (Students will give many different examples.)
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Payments to households not in exchange for goods and services currently produced are:
a. transfer payments. b. government purchases. c. consumption expenditures. d. investment expenditures.
The risk premium is the
A. Interest rate divided by the expected value. B. Interest rate charged to borrowers. C. Difference in rates of return on safe and risky investments. D. Interest rate paid to savers.
Which of the following will discourage investment?
What will be an ideal response?
The In the News article titled "Great Recession Officially Ended Last Year" came out over a year after the recession was statistically declared over. Which of the following obstacles does this article address?
A. Implementation problems. B. Measurement problems. C. Design problems. D. Goal conflicts.