The branch of economics that focuses on outcomes in highly aggregated markets, such as the markets ...

The branch of economics that focuses on outcomes in highly aggregated markets, such as the markets for labor or consumption goods, is called:
 a. macroeconomics.
 b. positive economics.
 c. normative economics.
  d. microeconomics.

Question 2

Indonesia experienced hyperinflation in the 1990s.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

The basic difference between macroeconomics and microeconomics is that:
 a. microeconomics looks at aggregate markets while macroeconomics is concerned with individual markets.
  b. macroeconomics is concerned with policy decisions while microeconomics applies only to theory.
 c. microeconomics is concerned with individual markets while macroeconomics is concerned with aggregate markets.
  d. macroeconomics is concerned with positive economics while microeconomics is concerned with normative economics.

Question 4

Demand-pull inflation is more likely to occur when the economy is producing at maximum capacity.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 5

Which of the following is most likely a topic of discussion in a microeconomics course?
 a. a decrease in the share of national income paid to the government in taxes
  b. an increase in the price of lumber used to construct houses
 c. an increase in the rate of inflation
 d. an increase in the number of jobless individuals filing unemployment claims

Question 6

Rapid increases in military spending by the federal government without accompanying increases in real output could be a cause of cost-push inflation.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

Which of the following lies primarily within the realm of macroeconomics?
 a. a study of the elasticity of demand for gasoline
 b. a study of how tax cuts stimulate aggregate production
 c. an analysis of supply and demand conditions in the electricity market
 d. a study of the impact of mad cow disease on the price of beef worldwide

Question 8

If a student borrowed 5,000 at a fixed rate of 8.9 percent to pay for this year's college expenses and the annual inflation rate turns out to be 11 percent, then the student's purchasing power for the year has increased.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 9

Which of the following lies primarily within the realm of microeconomics?
 a. an empirical analysis of the relationship between the growth of the money supply and the rate of inflation
  b. an economic model forecasting the impact of a tax increase on consumer spending and national output
  c. a study of supply and demand conditions in the market for orange juice
 d. a model forecasting the impact of a change in interest rates on the level of investment in the economy

Question 10

Variable-rate mortgages decrease the risks associated with unexpected inflation.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 11

Macroeconomic topics do not usually include:
 a. the rate of inflation.
 b. the rate of unemployment.
 c. economic growth.
 d. the profit maximizing decisions of an individual firm.

Question 12

If the inflation rate for a given year is 5 percent, then 1.00 in the previous year will buy goods worth approximately 0.95 this year.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 13

Which of the following statements most likely lies within the realm of macroeconomics?
 a. An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded.
 b. Due to process innovations in computer chip manufacturing, the market supply of computers increased.
 c. Due to an economic recession, manufacturing firms began implementing layoffs of their workforces.
 d. Anticipating that the benefits would outweigh costs involved, an undergraduate student purchases the course textbook.