Econ Unit 1 FA Dummy 5, 2025-26

A local government wants to boost economic growth by encouraging citizens to organize resources and take risks for new businesses. Which factor is being promoted?

• Entrepreneurship

• Capital accumulation

• Labor expansion

• Infrastructure improvement

When an individual takes the initiative to innovate and assemble inputs to start a new enterprise, which economic role are they fulfilling?

• Entrepreneurship

• Capital provision

• Labor contribution

• Supply chain management

Which field studies the broad trends of economic growth, inflation, and unemployment across an entire country?

• Microeconomics

• Macroeconomics

• Behavioral economics

• Developmental economics

What term describes the study of the general fluctuations in a nation's economy, including periods of expansion and recession?

• International trade

• Macroeconomics

• Consumer choice theory

• Market competition

Macroeconomics focuses primarily on:

• Individual consumer decisions and firm behavior

• The detailed workings of local markets

• The overall ups and downs in the economy

• The pricing strategies of companies

The study of economy-wide phenomena, such as GDP changes and unemployment rates, is called:

• Labor economics

• Macroeconomics

• Financial economics

• Industrial organization

Imagine a government is trying to reduce unemployment during a recession by changing tax policies and spending. Which branch of economics guides these decisions?

• Microeconomics

• Macroeconomics

• Environmental economics

• Health economics

If an economist measures inflation trends to predict future economic growth, they are engaging in:

• Microeconomic analysis

• Macroeconomic study

• Behavioral finance

• Business management

When studying how national policies affect unemployment and inflation over time, which economic perspective is most applicable?

• Microeconomic theory

• Macroeconomics

• Game theory

• Cost-benefit analysis

A country faces rising prices and job losses simultaneously. Which economic approach best examines the causes and potential solutions to these problems?

• Market economics

• Macroeconomics

• Individual decision-making

• Consumer behavior