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Indicate whether each of the following questions is relevant for the study of macroeconomics, the study of microeconomics, the study of both, or neither.
1. How will Ms. Martin’s tips change when a large manufacturing plant near the restaurant where she works closes?
a. the study of macroeconomics
b.the study of both macroeconomics and microeconomics
c. the study of microeconomics
d. the study of neither macroeconomics nor microeconomics
2. What will happen to spending by consumers when the economy enters a downturn?
a.the study of both macroeconomics and microeconomics
b. the study of microeconomics
c. the study of neither macroeconomics nor microeconomics
d. the study of macroeconomics
3.. How will the price of oranges change when a late frost damages Florida’s orange groves?
a.the study of both macroeconomics and microeconomics
b.the study of neither macroeconomics nor microeconomics
c.the study of microeconomics
d.the study of macroeconomics
4. How will wages at a manufacturing plant change when its workforce is unionized?
a. the study of neither macroeconomics nor microeconomics
b. the study of both macroeconomics and microeconomics
c. the study of macroeconomics
d. the study of microeconomics
5. What will happen to U.S. exports as the dollar becomes less expensive in terms of other currencies?
a. the study of macroeconomics
b. the study of both macroeconomics and microeconomics
c. the study of microeconomics
d. the study of neither macroeconomics nor microeconomics
6. . What is the relationship between a nation’s unemployment rate and its inflation rate?
a. the study of both macroeconomics and microeconomics
b. the study of microeconomics
c. the study of neither macroeconomics nor microeconomics
d. the study of macroeconomics
7. a. Before the Great Depression, the conventional wisdom among economists and policy makers was that the economy is largely self-regulating.
7. This view was ______with Keynesian economics.
a. inconsistent
b. consistent
8. The effect of the Great Depression on conventional wisdom was to:
reinforce it.
a. shift it to the Keynesian view.
b. There was no effect.
9. The response of policy makers during the 2001 recession was _____ the actions of policy makers during the Great Depression.
a. the same as
b. different from
10. In the United States, economists assign the task of identifying recessions to:
a. the National Bureau of Economic Research (NBER).
b. the Federal Reserve.
c. Congress.
11. This is ____ the approach used in many other countries.
a. the same as
b. different from
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