Macroeconomic Theory
Exam Materials
Course Introduction
Macroeconomic Theory explores the behavior and performance of an economy as a whole, focusing on aggregated indicators such as GDP, inflation, unemployment, and economic growth. The course examines the frameworks and models used to analyze national income determination, business cycles, monetary and fiscal policy, and international trade. Through theoretical and empirical approaches, students learn how government interventions and market forces influence economic stability and development, equipping them with the analytical tools to assess contemporary macroeconomic issues and policy debates.
Recommended Textbook
Microeconomics Today The Macro View 17th Edition by Roger LeRoy Miller
Available Study Resources on Quizplus
21 Chapters
7508 Verified Questions
7508 Flashcards
Source URL: https://quizplus.com/study-set/3950
Page 2
Chapter 1: The Nature of Economics
Available Study Resources on Quizplus for this Chatper
347 Verified Questions
347 Flashcards
Source URL: https://quizplus.com/quiz/78814
Sample Questions
Q1) The "paired observation" of (-14,-6)means
A)x = -14,y = -6
B)x = -6,y = -14
C)that the distance between the two points will be 8.
D)the origin is at -14 and -6.
Answer: A
Q2) Normative economic statements
A)are statements of "what ought to be."
B)are statements of "what is."
C)are statements that may be tested by referring to facts and data.
D)do not involve value judgments.
Answer: A
Q3) Assumptions in models tend to make
A)the model predict what the scientist wants the results to be.
B)the model more realistic.
C)the model more applicable to specific circumstances.
D)the model always predict the future accurately.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Scarcity and the World of Trade-Offs
Available Study Resources on Quizplus for this Chatper
411 Verified Questions
411 Flashcards
Source URL: https://quizplus.com/quiz/78812
Sample Questions
Q1) "Wants" as an economic concept includes
A)both material and nonmaterial desires.
B)only the purchase of necessary basic goods.
C)only the desire for luxury goods.
D)only those goods that can be purchased with one's paycheck.
Answer: A
Q2) A man-made resource such as a building or a machine is an example of which resource?
A)Entrepreneurial ability
B)Labor
C)Physical capital
D)Human capital
Answer: C
Q3) Which factor of production includes water?
A)physical capital
B)human capital
C)land
D)entrepreneurship
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Demand and Supply
Available Study Resources on Quizplus for this Chatper
448 Verified Questions
448 Flashcards
Source URL: https://quizplus.com/quiz/78801
Sample Questions
Q1) Explain how a market demand curve is found.
Answer: The market demand curve is the horizontal summation of the individual demand curves.A price is selected,and the quantities demanded of each person at that price are summed.Then another price is selected and the quantities demanded of each person at that price are summed.Continue doing this for other prices until the market demand curve is traced out.
Q2) Which one of the following would cause an increase in the demand for hotel rooms in Hawaii?
A)an increase in airfares to Hawaii
B)a decrease in airfares to Hawaii
C)an upward movement along the demand curve for stays in Hawaiian hotel rooms.
D)a downward movement along the demand curve for stays in Hawaiian hotel rooms.
Answer: B
Q3) Refer to the above figure.The rightward shift of the curve indicates
A)an increase in demand.
B)a decrease in demand.
C)an increase in quantity demanded.
D)a decrease in quantity demanded.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 3: Extensions of Demand and Supply Analysis
Available Study Resources on Quizplus for this Chatper
399 Verified Questions
399 Flashcards
Source URL: https://quizplus.com/quiz/78796
Sample Questions
Q1) Total consumer surplus in a market is measured as the A)area bounded above the market clearing price and beneath the market demand curve.
B)area bounded below the market clearing price and above the market supply curve.
C)vertical distance from the horizontal (quantity)axis to the market clearing price.
D)horizontal distance from the vertical (price)axis to the equilibrium quantity.
Q2) A black market is a market in which
A)goods are traded at prices above their legal maximum prices.
B)sales taxes are effectively doubled.
C)goods are sold at outlet prices.
D)sales take place exclusively at outlet prices.
Q3) Which of the following is an effect of a minimum wage law that establishes a ceiling wage below the current market clearing wage?
A)Surplus labor,or unemployment
B)A decrease in the market clearing wage
C)A decrease in the quantity of labor supplied
D)An increase in the quantity of labor supplied
Q4) What are the terms of exchange and how are these terms related to the price?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 4: Public Spending and Public Choice
Available Study Resources on Quizplus for this Chatper
346 Verified Questions
346 Flashcards
Source URL: https://quizplus.com/quiz/78795
Sample
Questions
Q1) What are the voting rules followed by the political system as opposed to the market system?
Q2) "Second-hand" smoke,an often cited disadvantage of allowing smoking in restaurants,is referred to in economics as a(n)
A)capital good.
B)externality.
C)economic cost.
D)negative investment.
Q3) If the government pays a per-unit subsidy to the producer of a service,we would expect to see a(n)
I.increase in the quantity demanded.
II.decrease in the out-of-pocket price paid by consumers.
III.increase in the quantity supplied by producers.
A)I only
B)both I and II only
C)both II and III only
D)I,II,and III
Q4) What is market failure? How can the government correct market failure?
Q5) What are the key characteristics of a public good?
Q6) How does a government-sponsored good differ from a public good?
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Funding the Public Sector
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/78794
Sample Questions
Q1) The marginal tax rate and the average tax rate are the same under a A)progressive income tax system.
B)regressive income tax system.
C)proportional income tax system.
D)none of the above.
Q2) Explain how corporate profits are taxed twice.
Q3) Using the above table,a unit tax of $2 is imposed on the product.The equilibrium price of this product after the tax is imposed is
A)$5.
B)$4.
C)$3.
D)$2.
Q4) Suppose you are making $50,000 per year and paying $5,000 per year in income taxes.You get a $10,000 per year raise and your income taxes are now $6,500 per year.Based on this information,the income tax system is A)proportional.
B)progressive.
C)regressive.
D)bracketed.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 6: Demand and Supply Elasticity
Available Study Resources on Quizplus for this Chatper
413 Verified Questions
413 Flashcards
Source URL: https://quizplus.com/quiz/78813
Sample Questions
Q1) Other things being equal,demand is less elastic
A)the more expensive the good is.
B)the smaller the percentage of a total budget that a family spends on a good.
C)the longer is the time period for adjustment.
D)the more substitutes a good has.
Q2) If the price elasticity of demand for good A is -1,then a 1% increase in
A)consumer income will result in a 1% decrease in the demand for good A.
B)consumer income will result in a 1% increase in the demand for good A.
C)the market price of good A will result in a 1% increase in the quantity demanded of good A .
D)the market price of good A will result in a 1% decrease in the quantity demanded of good A .
Q3) When two goods are complements,
A)the demands for both goods will be elastic.
B)cross price elasticity of demand will be 0.
C)cross price elasticity of demand will be negative.
D)cross price elasticity of demand will be positive.
Q4) Why is time such an important determinant in the elasticity of supply? Is time also important in determining price elasticity of demand? Explain.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 7: Consumer Choice
Available Study Resources on Quizplus for this Chatper
458 Verified Questions
458 Flashcards
Source URL: https://quizplus.com/quiz/78811
Sample Questions
Q1) Utility refers to
A)the usefulness of a good or service.
B)the value of a good or service.
C)the want-satisfying power of a good or service.
D)the degree to which a good or service is needed.
Q2) For good A and good B,the consumer maximizes personal satisfaction when
A)MUA/PA = PB/MUB.
B)PA/MUA = PB/MUB.
C)MUA/PA = MUB/PB.
D)MUA/MUB = PA/PB.
Q3) The marginal rate of substitution is
A)the change in the quantity of one good that just offsets a one unit change in the consumption of another such that the total satisfaction remains constant.
B)the additional satisfaction from consuming an additional unit of a good or service.
C)positively related to the level of income.
D)the set of goods and services that are available to the consumer given his income.
Q4) What is utility analysis? What is the goal of this analysis?
To view all questions and flashcards with answers, click on the resource link above.
10
Chapter 8: Rents, profits, and the Financial Environment of Business
Available Study Resources on Quizplus for this Chatper
445 Verified Questions
445 Flashcards
Source URL: https://quizplus.com/quiz/78810
Sample Questions
Q1) In a partnership,debts accumulated by one partner
A)are the responsibility of that partner only.
B)are the responsibility of the other partners as well.
C)are the responsibility of all the employees of the partnership,regardless of whether those employees are partners.
D)are the responsibility of the other partners only up to the amount each partner initially invested in the partnership.
Q2) The form of business organization responsible for generating the greatest portion of business revenues in the United States is the A)corporation.
B)dual proprietorship.
C)proprietorship.
D)partnership.
Q3) Pure economic rent is a payment to a resource that
A)has a high opportunity cost.
B)has a perfectly inelastic supply.
C)has a negative opportunity cost.
D)has a perfectly elastic demand.
Q4) Discuss the advantages and disadvantages of proprietorships.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The Firm: Cost and Output Determination
Available Study Resources on Quizplus for this Chatper
387 Verified Questions
387 Flashcards
Source URL: https://quizplus.com/quiz/78809
Sample Questions
Q1) The production function
A)shows the maximum level of output for a given set of inputs.
B)is an economic relationship between revenue and cost.
C)shows the relationship between input prices and amount of input used.
D)always shows increasing marginal product of labor.
Q2) Which of the following is NOT one of the reasons a firm might be expected to experience economies of scale?
A)specialization
B)the dimensional factor
C)improved productive equipment
D)depreciation
Q3) Refer to the above table.When the quantity of labor equals 3,what does the average product equal?
A)21
B)17
C)63
D)189
Q4) What is the difference between the short run and the long run? What is the appropriate time dimension of the long run?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Perfect Competition
Available Study Resources on Quizplus for this Chatper
431 Verified Questions
431 Flashcards
Source URL: https://quizplus.com/quiz/78808
Sample Questions
Q1) In the above figure,at the profit-maximizing rate of production for the perfectly competitive firm average total cost is
A)$10.
B)$3.
C)$7.
D)$70.
Q2) Refer to the above figure.If the market price is equal to A,which statement can be made about economic profits?
A)Economic profits are positive and equal to ABCG.
B)Economic profits are positive and equal to ABEF.
C)Economic profits are negative and equal to GCEF.
D)Economic profits are negative and equal to ABQ * 0.
Q3) For a perfectly competitive firm,
A)price is greater than marginal revenue.
B)price equals marginal revenue.
C)price is less than marginal revenue.
D)there is no relationship between price and marginal revenue.
Q4) What is a price taker? Discuss the assumptions used to obtain the perfectly competitive model.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Monopoly
Available Study Resources on Quizplus for this Chatper
386 Verified Questions
386 Flashcards
Source URL: https://quizplus.com/quiz/78807
Sample Questions
Q1) In the above figure,what is total revenue at the profit-maximizing point?
A)$182
B)$126
C)$170
D)$176
Q2) Which of the following statements is TRUE?
A)At the monopolist's equilibrium,resources are being efficiently allocated.
B)With a monopoly,the value to society of the last unit produced is less than it's production cost.
C)Monopolists raise the price and restrict production,compared to a competitive situation.
D)A monopolist always produces a higher level of output than would be produced if the market were competitive.
Q3) Refer to the above table.Given the demand and cost schedules,what is the profit-maximizing price for this monopolist?
A)$9
B)$12
C)$11
D)$10
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 12: Monopolistic Competition
Available Study Resources on Quizplus for this Chatper
309 Verified Questions
309 Flashcards
Source URL: https://quizplus.com/quiz/78806
Sample Questions
Q1) The distinguishing of products by brand name,color,and other attributes
A)is known as interdependence.
B)is known as product differentiation.
C)leads to many firms in the market.
D)leads to collusion.
Q2) What is the most important characteristic of monopolistic competition? How do firms behave differently from perfect competitors?
Q3) An information product typically has
A)high total fixed costs and high marginal costs.
B)low total fixed costs and low marginal costs.
C)low total fixed costs and high marginal costs.
D)high total fixed costs and low marginal costs.
Q4) The production of information products is characterized by
A)relatively low fixed cost.
B)relatively low marginal cost.
C)diseconomies of operation.
D)an upward sloping marginal cost curve.
Q5) According to Edward Chamberlin,is the "differentness" of products a waste of resources? Explain.
Page 15
Q6) Explain how information products are "special."
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Oligopoly and Strategic Behavior
Available Study Resources on Quizplus for this Chatper
307 Verified Questions
307 Flashcards
Source URL: https://quizplus.com/quiz/78805
Sample Questions
Q1) People do not usually behave in a noncooperative fashion even when it is in their immediate interest to do so because
A)they realize such behavior is immoral.
B)they know there can be 2 winners.
C)they know they will have repeated dealings with the other people.
D)they understand the difficulties with game theory.
Q2) An action that is the best choice under all conditions is known as the A)profit-maximizing strategy.
B)prisoner's dilemma.
C)tit-for-tat strategy.
D)dominant strategy.
Q3) Suppose a firm can charge a relatively low price to try to compete actively with its rivals,or it can charge a relatively high,collusive price.If its strategy is to charge the low price regardless of the other firms' decisions,this low-price is the firm's A)dependent strategy.
B)independent strategy.
C)dominant strategy.
D)positive sum strategy.
Q4) Why do firms form a cartel? How do cartels achieve their goals?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: Regulation and Antitrust Policy in a Globalized Economy
Available Study Resources on Quizplus for this Chatper
309 Verified Questions
309 Flashcards
Source URL: https://quizplus.com/quiz/78804
Sample Questions
Q1) Which of the following is NOT an objective of economic regulation?
A)to regulate the prices enterprises are allowed to charge
B)to fix prices so that they are never allowed to rise
C)to keep rates of return in an industry at a competitive level
D)to prevent monopoly profits
Q2) This agency is responsible for investigating complaints of discrimination based on race,religion,sex or age in hiring,promotion,firing,wages,testing,and all other conditions of employment.
A)Environmental Protection Agency
B)Food and Drug Administration
C)Equal Employment Opportunity Commission
D)Federal Trade Commission
Q3) If antitrust legislation is successful,then the monopolistic firm will
A)decrease output and charge a lower price than before.
B)increase output and charge a higher price than before.
C)increase output and charge a lower price than before.
D)decrease output and charge a higher price than before.
Q4) What is the main difference between economic regulation and social regulation?
Q6) Discuss the important provisions of the Sherman Antitrust Act of 1890. Page 17
Q5) What is the lemons problem? How do firms try to address this problem?
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 15: The Labor Market: Demand, supply and Outsourcing
Available Study Resources on Quizplus for this Chatper
376 Verified Questions
376 Flashcards
Source URL: https://quizplus.com/quiz/78803
Sample Questions
Q1) In a perfectly competitive industry,an individual firm faces
A)a perfectly inelastic labor supply curve.
B)a perfectly vertical labor supply curve.
C)a perfectly elastic labor supply curve.
D)none of the above.
Q2) Outsourcing is being practiced by
A)U.S.firms that want to keep jobs at home in the United States.
B)overseas firms hiring in the U.S.labor market and by U.S.firms hiring in foreign labor markets with lower wages.
C)U.S.firms only.
D)governments but private firms are not allowed to outsource work.
Q3) A single firm in a competitive labor market has a labor supply curve that is
A)upward sloping.
B)perfectly inelastic.
C)perfectly elastic.
D)downward sloping.
Q4) Explain the efficiency wage theory.
Q5) What does a monopolist's demand curve for labor look like? How does it compare to the market demand curve for a competitive industry? What does the supply curve of labor to a monopolist look like? Explain.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 16: Unions and Labor Market Monopoly Power
Available Study Resources on Quizplus for this Chatper
318 Verified Questions
318 Flashcards
Source URL: https://quizplus.com/quiz/78802
Sample Questions
Q1) A business enterprise in which employees must belong to the union before they can be hired is called a(n)
A)craft union.
B)industrial union.
C)closed shop.
D)union shop.
Q2) A profit-maximizing monopsonist will hire workers up to the point at which
A)W = MRP.
B)MRP = MFC.
C)W = MFC.
D)W = MRP = MFC.
Q3) Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate,then
A)there will be a surplus of jobs.
B)antitrust laws become effective.
C)there will be downward pressure on the wage rate until equilibrium is established.
D)there will be an excess supply of labor.
Q4) What is the purpose of a strike? What are the costs to workers and to management?
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 17: Income, poverty, and Health Care
Available Study Resources on Quizplus for this Chatper
302 Verified Questions
302 Flashcards
Source URL: https://quizplus.com/quiz/78800
Sample Questions
Q1) Which country has the highest per capita health care expenditures in the world?
A)Canada
B)France
C)United States
D)Japan
Q2) If income were distributed according to the egalitarian principle of "to each exactly the same," then one problem would be that
A)there would be little or no incentive for individuals to take risky,hazardous,or unpleasant jobs.
B)individuals would have an excess desire to invest in their own human capital.
C)too many individuals would want to take risky jobs.
D)productivity levels would probably become too high.
Q3) The lowest percentage of the U.S.population in poverty is found when using which measurement of household resources?
A)Private income only
B)Private income plus cash benefits
C)Private income with cash and in-kind benefits
D)Private income with Social Security payments subtracted
Q4) Why have health care costs risen so much in recent years?
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 18: Environmental Economics
Available Study Resources on Quizplus for this Chatper
300 Verified Questions
300 Flashcards
Source URL: https://quizplus.com/quiz/78799
Sample Questions
Q1) Transaction costs are
A)the costs associated with making a transaction that is required by the government.
B)not true costs since they are often not paid.
C)the costs associated with exchanges in the service area.
D)the costs associated with making,reaching and enforcing agreements.
Q2) An externality exists when
A)there are private costs.
B)there are internal costs.
C)there are external costs.
D)there are opportunity costs.
Q3) When a person drives an automobile,that individual is creating
A)internal costs only.
B)private costs only because the individual pays for the insurance,gas etc.
C)external costs only.
D)social costs.
Q4) "Creating a free market for carbon-dioxide emission permits would only encourage firms to pollute more." Do you agree or disagree? Why?
Q5) Why are externalities associated with common property rather than private property?
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 19: Comparative Advantage and the Open Economy
Available Study Resources on Quizplus for this Chatper
314 Verified Questions
314 Flashcards
Source URL: https://quizplus.com/quiz/78798
Sample Questions
Q1) Using the data in the above table,and assuming constant opportunity costs,it is likely that
A)the United States will export food.
B)Mexico will import cloth.
C)the United States will import both cloth and food.
D)Mexico will import both cloth and food.
Q2) In the long run,if imports increase,then exports
A)will not change.
B)will decrease.
C)will also increase.
D)will become zero.
Q3) The international agreement signed in 1947 to promote world trade by reducing tariffs and other barriers to international trade was called
A)GATT.
B)NAFTA.
C)WTO.
D)Bretton-Woods agreement.
Q4) What must a government know for the infant industry argument to be a valid reason for imposing tariffs?
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 20: Exchange Rates and the Balance of Payments
Available Study Resources on Quizplus for this Chatper
300 Verified Questions
300 Flashcards
Source URL: https://quizplus.com/quiz/78797
Sample Questions
Q1) Suppose the U.S.inflation rate falls while the inflation rate among the members of the European Monetary Union (EMU)holds constant.Other things equal,what will happen in the balance of payments accounts?
Q2) The agency which functions as a "lender of last resort" for national governments is the
A)International Trade Organization.
B)International Monetary Fund.
C)World Trade Organization.
D)World Trade Fund.
Q3) One way that countries can settle international payment obligations is
A)to run a balance of payments surplus.
B)to run a balance of payments deficit.
C)to use special drawing rights.
D)to stop trading.
Q4) Special Drawing Rights are
A)financial assets held by the U.S.Treasury Department.
B)the new currency for the European Union and a part of official reserves.
C)reserve assets created by the International Monetary Fund.
D)credits provided by the World Bank that permits less developed countries to borrow international reserves.
Page 24
To view all questions and flashcards with answers, click on the resource link above.