INTRO TO MICRO vs MACRO ECONOMICS

1. Microeconomics mainly studies:

• National income and growth

• Behavior of individual households and firms

• Inflation and unemployment

• Fiscal and monetary policies

2. Macroeconomics mainly focuses on:

• Individual markets

• Consumer decision-making

• The economy as a whole

• Cost minimization by firms

3. Which of the following is an example of microeconomics?

• Measuring GDP growth of a country

• Analyzing why coffee prices increase when demand rises

• Examining unemployment during a recession

• Designing fiscal stimulus packages

4. The interaction of demand and supply determines:

• Inflation rate

• Government spending

• Market equilibrium price and quantity

• National output

5. Which of the following is NOT a determinant of demand?

• Consumer income

• Tastes and preferences

• Prices of related goods

• Production costs

6. The law of demand states that:

• Higher prices increase quantity demanded

• Lower prices increase quantity demanded

• Supply creates its own demand

• Demand creates its own supply

7. The law of supply suggests that:

• Higher prices encourage more supply

• Lower prices encourage more supply

• Demand always determines supply

• Supply is fixed regardless of price

8. Which is a feature of perfect competition?

• One seller dominates the market

• Many sellers, identical products

• Firms can easily set high prices

• Government controls prices

9. Price elasticity of demand measures:

• Sensitivity of demand to price changes

• Sensitivity of supply to price changes

• Inflation in an economy

• GDP growth rate

10. Which of the following is a macroeconomic indicator?

• A bakery’s production cost

• National unemployment rate

• A student’s spending decisions

• Uber’s surge pricing in a city