Do macroeconomic issues concern the well-being of the typical individual member of an economy?
A) No, since we are focusing on the behavior of aggregate quantities.
B) No, since most individuals have little contact with other economies in the world.
C) Yes, since macroeconomic events have widespread effects on everyday lives.
D) Yes, since macroeconomics focuses on the decisions constantly being made by the average individual.
C
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Use the following diagram to answer the next question.
The most likely cause for a shift in the production possibilities frontier from AB to CD is
A. the use of the economy's resources in a less efficient way. B. an increase in government purchase of the economy's output. C. an increase in the quantity and quality of labor resources. D. an increase in the spending of business and consumers.
The gold standard period was
A) up until the first world war. B) between the first and second world wars. C) following the second world war until 1970. D) between 1954 and 1970. E) between 1814 and 1865.
The theory of efficiency wages suggests that
a. above-equilibrium wages increase worker productivity. b. workers with higher levels of education earn more than workers with lower levels of education. c. workers signal their high ability to potential employers by completing formal years of schooling. d. union workers earn more than nonunion workers.
The short-run aggregate supply curve is ________ and the long-run aggregate supply curve is _________
A) upward sloping; horizontal B) vertical; upward sloping C) vertical; horizontal D) upward sloping; vertical E) none of the above