Macroeconomics is best suited to answering questions such as
a. what determines the unemployment rate among students on this campus
b. why rent is higher in big cities than in smaller ones
c. how fast the overall price level will rise next year
d. what determines the demand for public transportation in rural areas
e. why sales taxes in this area are increasing
C
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What does the Coase Theorem predict?
What will be an ideal response?
In the circular-flow diagram, which of the following items does not flow from firms to households?
a. goods b. services c. capital d. profit
In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:
A. $3,750. B. $11,250. C. $60,000. D. $1,250.
If the market demand increases for a good sold in a perfectly competitive market, individual firms in the market:
A. will be able to charge a higher price for their product. B. will need to lower price in order to remain competitive. C. will not be able to change their price. D. will begin earning economic losses.