Macroeconomics and Microeconomics

What is included in macroeconomics?

• the causes of a change in the price of one product

• the causes of a market failure

• the causes of determinants of price elasticities of supply

• the causes of economic growth

What is included in microeconomics?

• the calculation of national income and expenditure

• the effects of a change in exchange rates on the trade balance of an economy

• the effects of an increase in the price of a good or service

• the factors leading to demand-pull inflation

What is not included in microeconomics?

• economies of scale

• forms of competition

• individual demand

• the inflation rate

Who is a microeconomic decision maker?

• the director of an international trade organisation

• the entrepreneur of a firm

• the finance minister of a government

• the governor of a central bank

What is a macroeconomic aim of a government?

• balance of payments stability

• deflation

• income inequality

• unemployment

What is a macroeconomic concept?

• the effect of a price change of a good

• the equilibrium price in the market for a good

• the reason for a change in a firm’s behaviour

• the total spending in an economy

What is a microeconomic decision?

• a central bank reducing interest rates

• a gas firm reducing its prices

• a government increasing income tax

• a government increasing the national minimum wage

A country experiences a long strike by railway workers.

What would be the macroeconomic impact of such a strike?

• National output would fall.

• Railway workers would lose income.

• The demand for taxi services would rise.

• The profits of railway operators would fall.

Which topic is included in microeconomics?

• economic growth

• elasticity of demand

• inflation

• the balance of payments

Microeconomics analyses choices in various situations. Which area of economic study does it not include?

• costs and revenues of a firm

• individual consumer behaviour

• policies for economic growth

• wages for different occupations