Macroeconomics is best defined by which of the following statements?
A) Macroeconomics is the study of how firms attempt to maximize profits.
B) Macroeconomics is the study of the behavior of the economy as a whole.
C) Macroeconomics is the study of individual households.
D) Macroeconomics is the study of how the prices of individual goods are determined.
Answer: B
You might also like to view...
The amount of income a consumer has to spend on goods and services is known as
A) wealth. B) a budget constraint. C) purchasing power. D) effective demand.
Suppose Brandon's indifference curves are defined as U = (3/4)?FS + (1/4)?FH, where FS is consumption during sunny weather and FH is consumption during a hurricane. Further suppose Brandon receives 64 units of food when it is sunny and 16 units when there is a hurricane. If the probability of sunshine is ? = 0.75, expected food consumption is:
A. 28. B. 40. C. 52. D. 80.
Bill looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered: a. out of the labor force
b. unemployed. c. employed in the underground economy. d. underemployed.
Which of the following is a positive side effect of business start-ups and the business failures that often follow?
a. The process makes it possible to try out numerous new ideas, and some of them will substantially improve our lives. b. The process increases total employment, and leads to a lower rate of unemployment. c. The process generates additional revenue for the government, which will then be used to produce goods and services that people value. d. This is a trick question. There are no positive side effects of business failures.