Macroeconomics 3rd Edition (Karlan) Chapter 1 Introduction to Macroeconomics Study Notes

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Macroeconomics 3rd Edition by Karlan CH01
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) The principles of economics can explain which of the following?
1.Why people choose to work or go to college
2.Why a country might prosper
3.How the value of money changes over time


1) ______


A) II and III only
B) I and II only
C) III only
D) I, II, and III



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
Difficulty : 02 Medium
Learning Objective : 01-01 Explain the economic concept of scarcity.
Topic : Basic Insights of Economics



2) Who makes decisions about how to allocate resources?
2) ______


A) Individuals
B) Businesses
C) Governments
D) All of these make decisions about resource allocation.




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Macroeconomics 3rd Edition by Karlan CH01

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Explain the economic concept of scarcity.
Bloom's : Remember
Difficulty : 01 Easy
Topic : Basic Insights of Economics



3) Which of the following statements best describes the study of economics?
3) ______


A) Economics studies how the Federal Reserve handles fluctuation in business cycles.
B) Economics studies how individuals and groups manage scarce resources.
C) Economics studies how people maximize returns in the stock market.
D) Economics studies how governments determine appropriate tax rates.



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Explain the economic concept of scarcity.
Bloom's : Remember
Difficulty : 01 Easy
Topic : Basic Insights of Economics



4) Alan could apply the principles of economic decision making when deciding:
1.how to spend his paycheck.
2.who to marry.
3.what to have for dinner after a long day at work.


4) ______




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Macroeconomics 3rd Edition by Karlan CH01

A) I, II, and III
B) I only
C) I and III
D) II and III



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
Difficulty : 02 Medium
Learning Objective : 01-01 Explain the economic concept of scarcity.
Topic : Basic Insights of Economics



5) The two broad fields that make up the subject of economics are:
5) ______


A) microeconomics and macroeconomics.
B) personal investments and business investments.
C) fiscal policy and monetary policy.
D) imports and exports.



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Learning Objective : 01-01 Explain the economic concept of scarcity.
Bloom's : Remember
Difficulty : 01 Easy
Topic : Basic Insights of Economics



6) Which of the following is considered a microeconomic issue?
6) ______




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Macroeconomics 3rd Edition by Karlan CH01

A) The local university decides to raise tuition for online course offerings.
B) The country of Zimbabwe has experienced a decline in inflation.
C) The economic growth rate rises in the United States.
D) The unemployment rate in Greece falls.



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
Difficulty : 02 Medium
Learning Objective : 01-01 Explain the economic concept of scarcity.
Topic : Micro versus Macro



7) Which of the following is considered a microeconomic issue?
7) ______


A) The unemployment rate in the United States from 1980 to present day
B) Apple's newest version of the iPhone
C) France’s growth rate over the last year
D) All of these are examples of microeconomic issues.



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
Difficulty : 02 Medium
Learning Objective : 01-01 Explain the economic concept of scarcity.
Topic : Micro versus Macro



8) Suppose Disney World decides to charge local residents a lower price than other park
visitors. This would fall under which field of economics?
8) ______




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