OnRamps Eco 1.2 Reading Quiz

What does microeconomics focus on?

• The actions of individual agents within the economy

• The overall performance of the global economy

• The environmental impact of production

• The study of government policies only

What does macroeconomics focus on?

• The behavior of specific markets

• Broad issues such as growth, unemployment, and inflation

• The actions of individual households

• The pricing strategies of firms

Which of the following is an example of a microeconomic question?

• What determines how households spend their budgets?

• What causes inflation to rise?

• What causes the economy to grow over the long term?

• What determines a nation’s standard of living?

Which of the following is an example of a macroeconomic question?

• What determines the price of a specific product?

• What determines the level of economic activity in a society?

• How do firms decide how many workers to hire?

• What determines how households save for the future?

What is the primary focus of microeconomics?

• The study of international trade policies

• The study of inflationary trends

• The study of government deficits

• The study of individual agents like households and businesses

What is the primary focus of macroeconomics?

• The study of firm-level production decisions

• The study of specific labor markets

• The study of the economy as a whole

• The study of individual consumer behavior

What is monetary policy concerned with?

• Environmental regulations

• Government spending and taxes

• Bank lending, interest rates, and financial capital markets

• Trade agreements between nations

What is fiscal policy concerned with?

• Government spending and taxes

• The pricing of goods and services

• The behavior of individual firms

• Bank lending and interest rates

Who conducts monetary policy in the United States?

• The Congress

• The Federal Reserve

• The Department of Treasury

• The President

Who determines fiscal policy in the United States?

• The Federal Reserve

• The Congress and the executive branch

• The Supreme Court

• The Department of Commerce