1.Which of the following statements accurately contrasts macroeconomics and microeconomics?

Select one:

a. Macroeconomics focuses attention on the seller; microeconomics focuses attention on the buyer.

b. Macroeconomics focuses attention on the local economy; microeconomics focuses attention on the industry.

c. Macroeconomics focuses attention on changes at the market level of prices; microeconomics focuses attention on changes at the overall level of prices.

d. Macroeconomics focuses attention on changes at the overall level of prices; microeconomics focuses attention on changes at the market level of prices.

2.Which of the following accurately describes the direction that quantities and revenues take within the circular flow model?

Select one:

a. Households send goods and services to firms and receive revenues for them.

b. Households receive goods and services from firms and send revenues to them.

c. Households obtain land, labor, and capital from firms and pay resource costs.

d. Firms provide land, labor, and capital to households and receive resource payments.

3.Which of the following statements regarding GDP is accurate?

Select one:

a. Real GDP presents a dollar amount adjusted for inflation.

b. The income approach to GDP includes consumer expenditures.

c. The expenditure approach to GDP includes disposable income.

d. Nominal GDP presents a dollar amount adjusted for inflation.

4.The location or level of an existing production possibility curve assumes population, technology, and worker productivity are:

Select one:

a. dynamic.

b. constant.

c. all decreasing.

d. all increasing.

5.Personal disposable income is the sum of:

Select one:

a. gifts and savings.

b. spending and savings.

c. savings and borrowing.

d. take home pay and tax withholding.

6.Which of the following statements regarding inflation is accurate when all else is held constant?

Select one:

a. Cost push inflation is a result of decrease in aggregate demand.

b. Demand pull inflation is a result of decrease in aggregate demand.

c. Cost push inflation is a result of an increase in aggregate supply.

d. Demand pull inflation is a result of an increase in aggregate demand.

7.According to the logic behind the Phillips curve, _______ relationship exists between the _______ rate and the unemployment rate.

Select one:

a. a direct; inflation

b. a negative; interest

c. a positive; interest

d. an inverse; inflation