Macroeconomics Quiz

What is the branch of economics that studies the behavior and performance of an economy as a whole?

• Marketing

• Finance

• Macroeconomics

• Microeconomics

Which of the following is a difference between macroeconomics and microeconomics?

• Study of individual decision making vs. study of economy as a whole

• Study of marketing vs. study of finance

• Study of international relations vs. study of domestic policies

• Study of history vs. study of mathematics

What is one of the objectives of macroeconomics from the conventional perspective?

• Achieving full unemployment

• Achieving price stability

• Achieving economic decline

• Achieving price instability

What does full employment refer to in an economy?

• Wastage of available resources

• 100% of the labor force being employed

• No unemployed or jobless people

• Optimizing available resources efficiently

Why is maintaining price stability beneficial for an economy?

• It decreases purchasing power

• It allows consumers to safely pursue long-term plans

• It leads to uncertainty and disruptions

• It increases inflation rate

How can economic growth be described?

• Expansion in national output over time

• Decrease in national output over time

• Stagnation in national output over time

• Fluctuation in national output over time

What is the consequence of a country facing a balance of payment deficit?

• High debt problems

• Inflation

• Economic growth

• Equitable distribution of income

Why is it important for a country to achieve equilibrium in the foreign sector?

• To increase debt problems

• To decrease economic growth

• To avoid inflation

• To understand and determine the favorable scale of their BOP

What does achieving an equitable distribution of income aim to prevent?

• Foreign sector imbalance

• Social friction and problems

• Economic growth

• Inflation

What is the branch of economics that studies decision making for the economy as a whole?

• Microeconomics

• Macroeconomics

• Finance

• Marketing