Chapter 1- Macroeconomics

Macroeconomics theory studies the following EXCEPT…

• How to determine international trade activities

• How to determine the unemployment and inflation rate

• How to determine the equilibrium income in an economy

• How to determine type and quality of goods to produce

Macroeconomics studies the economy from viewpoint of …

• The firms

• The households

• The government

• The entire economy

Which of the following is NOT a macroeconomics objective?

• To achieve equal distribution of income

• To maintain domestic price instability

• To achieve full employment of resources

• To achieve sustainable economic growth

Which of the following is a macroeconomic statement?

• The price of rice decline by 1%

• ALTEL company profit increase by 10%

• The demand of PEPSI dropped

• The income of Malaysian increase

Which of the following is not the area of macroeconomics:

• Unemployment rate

• Market structure

• Inflation rate

• Foreign exchange rate

A country is said to be experiencing inflation when…

• Prices of most goods and services are rising over time

• Total output is falling over time

• Total output is rising over time

• Prices of most goods and services are falling over time

Which of the following is a macroeconomics objective?

• Unemployment

• Extremely high economic growth

• Employed all available resources

• Inflation

Macroeconomics approaches the study of economics from the viewpoints of

• individual firms

• individual consumers

• government units

• the entire economy

The three major macroeconomic goals do not include

• full employment

• price level stability

• sustained economic growth

• high levels of environmental quality

____ is the branch of economies that studies the individual decision making such as households, firms and government.

• Macroeconomics

• Microeconomics

• Masterconomics

• Microplan economics