CHAPTER 1: INTRODUCTION TO MACROECONOMICS

 

1.       Which of the following statements best defines macroeconomics?

• Macroeconomics is the study of how governments maximize their revenue.

•    Macroeconomics is the study of the consumption patterns of low-income households.

• Macroeconomics is the study of the entire economy.

•   Macroeconomics is the study of how individual prices are determined.

1.       Macroeconomics is concerned with all the following, except

•        The growth of real output

•      The level of unemployment

•        The general level of prices

• Production methods and costs

1.       Which of the following is a focus of the study of macroeconomics?

• inflation

• average cost

• individual demand

• factor demand

1.       Macroeconomics focuses on the study of economics from the standpoint of ……………………..

• individual economic units

• a typical firm

• a typical household

• the entire economy

These are all conventional macroeconomic objectives except

• to achieve price stability

• to achieve universal education

• to achieve economic growth

• to achieve a healthy balance of payments

Macroeconomics is ...............

• the study of market regulations

• the study of economy-wide phenomena

• The study of how households and firms make decisions and how they interact

• The study of money and financial markets

Macroeconomics is concerned with the study of ………………..

• How Malaysians respond to oil price changes

• Production methods and costs

• The effects of a reduction in wages on agricultural products

• The general price level

Which of the following topics is related to macroeconomics?

• the price of cooking oil

• the wage rate of fresh graduates

• unemployment in the nation

• the production of automobiles

The goal of macroeconomics is .......................

• to explain the economic changes that affect a particular household, firm, or market

• to explain the economic changes that affect many households, firms, and markets simultaneously

• a.       To devise policies to deal with market failures such as monopoly, externalities, common resources, and public goods

• all of the above

Macroeconomic theories study all of the following except

• consumer behaviour in maximizing utility

• international trade activities

• unemployment and inflation

• the equilibrium of money markets