Question 1

Macroeconomics is distinguished by its concentration on
A) choices.
B) the performance of national economies and ways to improve upon that performance.
C) individual markets.
D) the level of prices in specific markets.
E) abstract models.

Accepted Answer

Macroeconomics focuses on the overall performance of national economies and ways to improve upon that performance. It is concerned with things like GDP, inflation, unemployment, and government policies that affect these factors.

Question 2

Which of the following is a macroeconomic issue?
A) Planning a price increase for daily bus fare.
B) Predicting inflation rates for next year.
C) Determining how many permits should be issued for single homes in Montreal.
D) Negotiation a wage increase for faculty at local university.
E) Identifying the best location for future department stores in Ontario.

Accepted Answer

Inflation rates are a macroeconomic issue because they affect the entire economy and are determined by factors such as monetary policy and economic growth. Planning a price increase for daily bus fare, determining how many permits should be issued for single homes in Montreal, negotiating a wage increase for faculty at local university, and identifying the best location for future department stores in Ontario are all considered microeconomic issues because they involve individual businesses or local communities.

Question 3

The study of national economies,and policies to improve their performance,is known as
A) microeconomics.
B) economics.
C) macroeconomics.
D) intereconomics.
E) intraeconomics.

Accepted Answer

The study of national economies and policies to improve their performance is known as macroeconomics. Microeconomics focuses on the behavior and decisions of individuals and small businesses, while macroeconomics is concerned with the overall performance and behavior of an economy. In this case, the question specifically mentions "national economies," which is a key characteristic of macroeconomics. The other choices, intereconomics and intraeconomics, are not commonly recognized terms in the field of economics.

Question 4

Which of the following is a microeconomic statement?
A) Tariff barriers hurt all Canadians.
B) Inflation will remain low for the next two years.
C) Inflation and unemployment will remain low for the next two years.
D) Increased gasoline prices have raised taxi fares by 10%.
E) National output remained constant last year.

Accepted Answer

This statement relates to the specific impact of increased gasoline prices on taxi fares, and is therefore a microeconomic statement.

Question 5

Even today,microeconomic concepts developed by ___________ remain influential.
A) Adam Smith.
B) Alfred Marshall.
C) David Hume
D) John Maynard Keynes.
E) John Stuart Mill.

Accepted Answer

Alfred Marshall is considered to be one of the most influential economists in the field of microeconomics. His concepts, such as demand and supply curves, elasticities, and consumer surplus, are still widely used and studied in modern economics. While other economists listed have also made significant contributions, Marshall's impact on microeconomics has been particularly lasting.

Question 6

How the price mechanism allocates resources in particular markets is a topic in
A) microeconomics.
B) macroeconomics.
C) welfare economics.
D) entrepreneurial economics.
E) positive economics.

Accepted Answer

The price mechanism and its role in allocating resources is a fundamental topic in microeconomics, which is concerned with the study of individual markets and the behavior of decision-makers within them.

Question 7

Which of the following is a microeconomic statement?
A) Interest rates in Canada are directly linked to interest rates in the United States.
B) The Competition Bureau accuses oil companies of illegally fixing gas prices.
C) The government negotiated a trade agreement with the European Union.
D) The unemployment rate increased by 1.5% this year.
E) National output fell by 1% last year.

Accepted Answer

Microeconomics focuses on individual markets and firms. The statement about the Competition Bureau and oil companies involves market behavior and firm actions, which are microeconomic topics.

Question 8

Which of the following questions would NOT be part of macroeconomics?
A) What caused the Great Depression?
B) At what rate does the Canadian economy typically grow?
C) Did the sharp increase in gasoline prices alter SUV sales?
D) How does government spending affect the economy?
E) Do trends exist in the national rate of unemployment?

Accepted Answer

This question is more related to microeconomics as it focuses on the specific effect of a price increase on consumer behavior, rather than analyzing broader trends or factors that impact the overall economy.

Question 9

Which of the following is a macroeconomic statement?
A) Unionized workers for Ford went on strike for higher wages.
B) The price of wheat doubled in the past month.
C) Forest fires destroyed thousands of hectares in Western Canada.
D) The demand for smart phones increased by 10% this year
E) National output fell by 1% last year.

Accepted Answer

The statement "National output fell by 1% last year" is a macroeconomic statement as it refers to the overall performance of the economy. The other statements are either microeconomic (A and D) or related to natural disasters (C) or sudden changes in commodity prices (B).

Question 10

Economics is best defined as the study of
A) prices and quantities.
B) inflation and interest rates.
C) how people make choices under the conditions of scarcity,and the results of the choices.
D) how to make money.
E) wages and incomes.

Accepted Answer

Economics is focused on studying how individuals and society allocate scarce resources to satisfy unlimited wants and needs. It is concerned with the choices people make to maximize their benefits and the resulting outcomes of those choices. While prices, inflation, interest rates, wages, and incomes are all relevant to economics, they are not the central focus. Making money is also not the primary purpose of economics, although it can be an outcome of economic activity.

Question 11

Microeconomics includes the study of
A) inflation.
B) unemployment.
C) economic growth.
D) the distribution of income.
E) the national aggregate output.

Accepted Answer

Microeconomics focuses on the behavior and decision-making of individual consumers, firms, and industries. The distribution of income is a topic that falls under this purview. A, B, C, and E are topics typically studied in macroeconomics, which examines the functioning and performance of the economy as a whole.

Question 12

The study of individual choices and group behaviour in individual markets defines
A) microeconomics.
B) economics.
C) the scarcity principle.
D) macroeconomics.
E) the cost-benefit principlE.

Accepted Answer

Microeconomics is the study of how individuals, households, and firms make decisions in individual markets. It focuses on individual choices and group behavior in these markets.

Question 13

Which of the following is a macroeconomic statement?
A) Severe drought in the prairies has increased the price of wheat.
B) Technological improvements have lowered prices in the automobile industry.
C) The provincial government of British Columbia has increased tuition fees.
D) The unemployment rate in Canada is expected to decline over the next two years.
E) Hurricanes in Florida lead to greater exports of soft wood lumber from Canada to the U.S.

Accepted Answer

Statement D is a macroeconomic statement because it refers to the overall state of employment in Canada, rather than a specific industry or region. The other statements are either microeconomic (A, B, and E) or related to government policy (C).

Question 14

The economist often considered the "father of macroeconomics" is ___________.
A) Adam Smith.
B) Alfred Marshall.
C) David Hume
D) John Maynard Keynes.
E) John Stuart Mill.

Accepted Answer

John Maynard Keynes is widely considered the "father of macroeconomics" for his groundbreaking work on the relationship between aggregate demand and unemployment, as outlined in his book "The General Theory of Employment, Interest, and Money" published in 1936. While other economists such as Adam Smith and David Hume contributed to the field of economics more broadly, they are not typically recognized as the founders of macroeconomics specifically.

Question 15

The Scottish economist who wrote "The Wealth of Nations" was ______________
A) Adam Smith.
B) Alfred Marshall.
C) David Hume
D) John Maynard Keynes.
E) John Stuart Mill.

Accepted Answer

Adam Smith is widely known as the author of "The Wealth of Nations," which is considered one of the most important works in the field of economics.

Question 16

The study of macroeconomics includes
A) the choices made by individual consumers.
B) the production decisions of firms.
C) the causes of poverty.
D) the determinants of the national unemployment rate.
E) individual markets.

Accepted Answer

Macroeconomics is the study of the overall behavior and performance of an economy, focusing on factors such as inflation, economic growth, and unemployment at the national level. Therefore, the determinants of national unemployment rate fall within the domain of macroeconomics.

Question 17

The distinguishing feature of microeconomics is studying
A) choices.
B) the performance of national economics.
C) the overall price level.
D) choices made by individuals or groups in the context of individual markets.
E) how to improve the performance of national economies.

Accepted Answer

Microeconomics focuses on studying the choices made by individuals or groups in the context of individual markets, rather than overall performance of national economics or how to improve the performance of national economies.

Question 18

Which of the following decisions would NOT be part of microeconomics?
A) What university major to select.
B) How to make the largest profit.
C) Whether to study or watch TV tonight.
D) How will an early frost in Prince Edward Island affect the price of potatoes.
E) Should the federal budget always be balanced.

Accepted Answer

The federal budget is a macroeconomic issue, not a microeconomic one. Microeconomics focuses on individual decision-making and the behavior of firms in specific markets, while macroeconomics looks at the overall performance of the economy as a whole.

Question 19

The focus of microeconomics is the study of
A) national economies.
B) trends in consumer purchases.
C) the total value of national output.
D) individuals and firms.
E) the determinants of the unemployment ratE.

Accepted Answer

Microeconomics is concerned with the study of individuals, firms, and small groups rather than the entire economy. It examines how they make decisions regarding the allocation of resources, how they interact with each other in markets, and how they respond to changes in policies and economic conditions.

Question 20

Macroeconomics differs from microeconomics in that
A) the concept of scarcity applies to the latter but does not apply to the former.
B) the latter studies individual markets while the former studies groups of markets,including the whole economy.
C) rational decisions are relevant to the former but not the latter.
D) the former is the study of how people make choices under conditions of scarcity while the latter is concerned with the results of those choices for society.
E) the former explains such concepts as how prices are determined in markets while the latter explains the overall price level.

Accepted Answer

Microeconomics focuses on individual markets and specific economic agents, such as households and firms, while macroeconomics studies the overall performance of the economy, including the measurement of aggregate variables like GDP and inflation rate.

Quiz 1: Measuring Macroeconomic Performance: Output and Prices

Macroeconomics is distinguished by its concentration on

Which of the following is a macroeconomic issue?

The study of national economies,and policies to improve their performance,is known as

Which of the following is a microeconomic statement?

Even today,microeconomic concepts developed by ___________ remain influential.

How the price mechanism allocates resources in particular markets is a topic in

Which of the following is a microeconomic statement?

Which of the following questions would NOT be part of macroeconomics?

Which of the following is a macroeconomic statement?

Economics is best defined as the study of

Microeconomics includes the study of

The study of individual choices and group behaviour in individual markets defines

Which of the following is a macroeconomic statement?

The economist often considered the "father of macroeconomics" is ___________.

The Scottish economist who wrote "The Wealth of Nations" was ______________

The study of macroeconomics includes

The distinguishing feature of microeconomics is studying

Which of the following decisions would NOT be part of microeconomics?

The focus of microeconomics is the study of

Macroeconomics differs from microeconomics in that