Question 1

Which of the following BEST describes macroeconomics?

Accepted Answer

Macroeconomics focuses on the overall performance and behavior of the economy as a whole, and how it is influenced by factors such as government policies, international trade, and the actions of firms and individuals. It does not primarily focus on the choices made by individuals and firms in coping with scarcity (which is part of microeconomics) or examine how individual choices affect governments (which is more a matter of political science). Macroeconomics is a social science, and while proving causation can be challenging in this field (as in any social science), it does attempt to make and test predictions about the behavior of the economy.

Question 2

When a third string NFL quarterback earns more than a police officer,society answers the ________ question.

Accepted Answer

The question being answered is "for whom" - as in, who is benefiting or being prioritized in the allocation of resources (in this case, salary) - given that a relatively low-skilled and non-essential athlete is being compensated more than a public servant tasked with maintaining public safety.

Question 3

When Fresh Express Salads decides to mechanically pick all of its lettuce,it directly answers the ________ question.

Accepted Answer

By choosing to mechanically pick all of its lettuce, Fresh Express Salads is answering the "how" question, as it is describing the method or process by which it will collect its produce.

Question 4

Which of the following is the best example of a "What?" question?

Accepted Answer

The answer of Which of the following is the best...

Question 5

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

Accepted Answer

The question "for whom" addresses the issue of who benefits from the government decision to pay senators more than soldiers. Choosing option C implies that the government made a decision based on the group of people that would benefit the most from it.

Question 6

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Accepted Answer

The question "For whom?" is specifically concerned with how income and prices affect the distribution of goods and services among different groups of people.

Question 7

When Delta decides to quit flying to Lithuania,it directly answers the ________ question.

Accepted Answer

The decision to stop flying to Lithuania directly answers the "what" question, as it specifies what action Delta is taking.

Question 8

When Ford decides to increase production of hybrid cars,it directly answers the ________ question.

Accepted Answer

Deciding to increase production of hybrid cars directly answers the "what" question in economics, which concerns what goods and services to produce.

Question 9

Macroeconomics is the study of

Accepted Answer

Macroeconomics is the study of the economy as a whole, including national or global economies, and looks at topics such as inflation, unemployment, economic growth, and international trade. It is distinct from microeconomics, which focuses on the behavior of individual consumers and businesses.

Question 10

Which of the following is a macroeconomic topic?

Accepted Answer

The topic of slow production and job expansion in a particular year is a macroeconomic topic as it pertains to the overall state of the economy. The other options are either specific decisions made by individual businesses or government entities, or the effect of a singular event on a specific market or industry.

Question 11

The question of "What goods and services get produced?" most closely relates to which of the following issues?

Accepted Answer

This question relates to the allocation of resources, which is a fundamental issue in economics. It involves deciding how to use limited resources to meet various needs and wants in society. The example of choosing between building a missile defense system or putting a computer in every elementary school classroom illustrates the trade-offs and opportunity costs associated with these decisions.

Question 12

Of the three major economic questions,which of the following is the best example of a "How?" question?

Accepted Answer

The question "Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines?" is a "How?" question because it is concerned with the manner in which tolls should be collected on turnpikes. It is asking about the method or process that should be used, rather than whether or not tolls should be collected at all (a "What?" question) or how much tolls should be (a "For whom?" question).

Question 13

When you make the decision to spend your time attending class,which economic question are you answering?

Accepted Answer

By choosing to attend class, you are deciding on "What" to do with your time, addressing the economic question of allocation of resources (in this case, time).

Question 14

Which of the following is a macroeconomic topic?
i.China increases interest rates to slow its economic growth.
ii.Congress lowers tax rates to try and lower the unemployment rate.
iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Accepted Answer

Macroeconomics is concerned with the behavior of the entire economy. The decision to increase interest rates and the effort to lower the unemployment rate are both macroeconomic policies. The decision of a single company, Nissan, to produce more Leaf models and fewer Altima sedans, is a microeconomic issue.

Question 15

Which of the following is a microeconomic topic?
i.Gas prices increase after a hurricane hits the gulf coast.
ii.Xavier starts a new business designing web pages.
iii.Abby decides to practice an extra hour of soccer instead of studying.

Accepted Answer

Microeconomics deals with individual and business decisions, such as price changes due to specific events (i), starting a new business (ii), and individual choices like time allocation (iii).

Question 16

When a home builder decides to computerize all of its production schedule,it directly answers the ________ question.

Accepted Answer

Computerizing the production schedule deals with the process of how the home building company will carry out its production.

Question 17

Which of the following is a macroeconomic issue?

Accepted Answer

The number of jobs and production in a country is a macroeconomic issue as it relates to the overall performance of the country's economy.

Answer: E
 Utilities being required to install more anti-pollution devices is a macroeconomic issue as it can impact the overall cost of production and potentially affect the environment and public health.

Question 18

The question of "How are goods and services produced?" most closely addresses which of the following issues?

Accepted Answer

This question directly addresses the production process of goods and services, which includes decisions about factors of production such as labor, capital, and technology. The example given in option B specifically involves a choice between two different factors of production (industrial robots and human labor) for producing a certain good (SUVs).

Question 19

Which of the following is a topic studied in macroeconomics?

Accepted Answer

Macroeconomics looks at the big picture of the economy and analyzes how different factors, such as government policies, affect the overall economic growth. Option B is the only topic that addresses this aspect of macroeconomics.

Question 20

When the power company decides to use manpower to bury its lines,it directly answers the ________ question.

Accepted Answer

The question asks how the power company plans to bury its lines, indicating a focus on the method or process utilized. The other answer choices do not address this specific inquiry.

Quiz 1: Getting Started