We can use macroeconomic analysis to
A) learn how to balance a checkbook.
B) understand why economies grow.
C) study the choices made by households.
D) understand marginal changes in the macroeconomy.
B
You might also like to view...
All of the following statements about the free market equilibrium output are equivalent except:
a. Total surplus is maximized. b. There is zero dead-weight loss. c. There are no allocations that a Pareto preferred. d. There is positive dead-weight loss.
Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?
A) 0 B) 90 C) 95 D) 100 E) none of the above
Government spending programs that create jobs are often popular because
A) when spending programs are funded by the government there are no secondary effects. B) if a spending program is approved by Congress, it means that the value of what is produced is greater than the value of the resources used to produce it. C) the benefits of job creation are always greater than the costs. Jobs are the key to economic progress. D) the created jobs are highly visible, while the secondary effects of lost jobs in other areas, higher interest rates, and higher future taxes are less visible.
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If the capital stock is fixed at four units and there are three units of labor, what is the average product of labor?
A. 50 B. 140 C. 170 D. 157.5 E. none of the above