On Friday May 3, 2013, the headlines in the list appeared in The Wall Street Journal. Classify each headline as a signal that the news article is about a microeconomic topic or a macroeconomic topic. Explain your answers
What will be an ideal response?
• Job Gains Calm Slump Worries
This entry is a macroeconomic topic because the slump concerns a turndown in the overall economy and neither an individual nor a busi-ness makes the decision to slow the aggregate economy.
• Washington Post's Profit Falls
This entry is a microeconomic topic because it concerns the profit out-come of one business, the Washington Post.
• Overcapacity, Fuel Costs Hit Shipping
This entry is a microeconomic topic. It describes the situation within one sector—shipping—which is being affected by overcapacity and a rise in the price of fuel.
• Green Shoots in Greece?
This entry is a macroeconomic topic because the "green shoots" mean that growth in different sectors is starting to grow. It is a sign that per-haps the overall Greek economy is starting to grow.
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If inflation causes the absolute prices of all commodities to double, then the relative prices
a. will also double. b. will be halved. c. will be unchanged. d. may rise, fall, or remain unchanged.
According to the circular flow diagram, the dollar value of a nation's output is equal to
A) profits. B) total income. C) net income minus taxes. D) wages.
When the purchase price of an asset is less than its sale price, then there is a
A) budget deficit. B) corporate income tax. C) capital gain. D) capital loss.
The International Water Management Institute estimates that clean water could be provided to everyone on earth for an outlay of $______ a year beyond current spending on water projects.
Fill in the blank(s) with the appropriate word(s).