Briefly describe the following tasks of macroeconomists: forecasting; analysis; research; and data development
What will be an ideal response?
(a) Forecasting. Macroeconomists develop models to predict the future values of macroeconomic variables in one or more markets. These models are usually based on economic theory but are statistical in form and estimated using macroeconomic data.
(b) Analysis. Macroeconomists analyze changes in macroeconomic policies as well as other changes in macroeconomic market conditions. This analysis is based on economic theory, uses analytic reasoning techniques, and may rely on forecasting models.
(c) Research. The goal of macroeconomic research is to make general statements about how the economy works. Research economists formulate and test theories.
(d) Data development. Macroeconomic data development provides the data needed in macroeconomic research, analysis, and forecasting. Most macroeconomic data are collected and published by the government.
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Which of the following statements regarding equilibrium in the markets for capital and for a natural resource used in producing a good is true?
A) The marginal revenue product of capital will equal the rental price of capital and the marginal revenue product of the natural resource will equal the price of the natural resource. B) The rental price of capital will equal the price of the natural resource. C) The marginal product of capital will equal the rental price of capital and the marginal product of the natural resource will equal the price of the natural resource. D) The marginal revenue product of capital will equal the marginal revenue product of the natural resource.
Leaving out spending on consumer durables, the LCH and the PIH strengthens the case for policy ________ and the essential ________ of the private economy
A) rules, stability B) rules, instability C) activism, stability D) activism, instability
A concentration ratio is the ratio of
a. market share to the number of firms in an industry b. total sales to the number of firms in an industry c. large firms to small firms in an industry d. total sales of the leading firms to total sales in the industry e. total profits of the leading firms to total profits in the industry
A fundamental aspect of public goods is that they
A) are just like private goods EXCEPT that everybody wants to consume the same amount. B) have positive externalities. C) are characterized by the principle of rival consumption. D) can be consumed jointly by many people simultaneously.