Macroeconomics studies the determination of
a. total output, total employment, the general price level, and the general level of interest rates
b. total output and the general level of interest rates only
c. total employment and the general level of prices only
d. the interaction of individual economic actors in specific markets and industries
e. the levels of employment and prices in specific markets and industries
A
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Suppose a Japanese bank offers a 4 percent interest rate and U.S. banks offer a 2 percent interest rate. People must expect the yen to
A) depreciate by 2 percent. B) appreciate by 2 percent. C) depreciate by 6 percent. D) appreciate by 6 percent.
With respect to welfare economics, why is the equilibrium price of a product considered to be the best price?
a) It minimizes costs and maximizes profits of sellers. b) It minimizes the level of welfare payments to those who no longer live below the poverty line. c) It maximizes total revenue to firms and total utility to buyers. d) It maximizes the total welfare of buyers and sellers.
How do monopoly prices and quantities produced differ from perfectly competitive outcomes, all other things equal?
A. Monopoly prices and quantities are both lower than competitive outcomes. B. Monopoly prices and quantities are both higher than competitive outcomes. C. Monopoly prices are lower than competitive prices but monopoly quantities are higher than competitive quantities. D. Monopoly prices are higher than competitive prices but monopoly quantities are lower than competitive quantities.
A one-time tax rebate, which is not expected to be extended in future years, will
A) have a moderately positive effect on consumption and aggregate demand. B) have no effect on consumption and aggregate demand. C) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate. D) increase aggregate supply and aggregate demand.