b. It analyzes mergers and acquisitions between firms. An economy is the large set of interrelated economic production and consumption activities that determines how scarce resources are allocated. The field of macroeconomics is organized into many different schools of thought, with differing views on how the markets and their participants operate. Exploring How an Economy Works and the Various Types of Economies. Keynesian economists also believe that there are certain rigidities in the system, particularly sticky prices that prevent the proper clearing of supply and demand. Economics deals with the problem of choice,that is, … Economic stimulus refers to attempts by governments or government agencies to financially kickstart growth during a difficult economic period. a. The performance of companies, and by extension their stocks, is significantly influenced by the economic conditions in which the companies operate and the study of macroeconomic statistics can help an investor make better decisions and spot turning points. The other involves the causes and consequences of short-term fluctuations in national income and employment, also known as the business cycle. Advertising is an invasive aspect of modern society. Macroeconomics differs from microeconomics, which focuses on smaller factors that affect choices made by individuals and companies. (Human effort is one of the resources of production) A3. For example, the unemployment level in the economy as a whole has an effect on the supply of workers from which a company can hire. )It uses humor and exaggeration to express a particular point of view B. A. What creates or stimulates economic growth? Study of production,distribution and consumption of goods and services in an economy is known as economics. Q.Which of the following describes human effort in economics A1. Macroeconomics attempts to measure how well an economy is performing, to understand what forces drive it, and to project how performance can improve. Such macroeconomic models, and the forecasts they produce, are used by government entities to aid in the construction and evaluation of economic, monetary, and fiscal policy; by businesses to set strategy in domestic and global markets; and by investors to predict and plan for movements in various asset classes. A key distinction between micro- and macroeconomics is that macroeconomic aggregates can sometimes behave in ways that are very different or even the opposite of the way that analogous microeconomic variables do. The Monetarist school is a branch of Keynesian economics largely credited to the works of Milton Friedman. Economics Economics For Today Which of the following best describes total fixed cost? Economics studies how: (Points : 10) a. to organize production so that scarcity does not occur. a) money b) happiness c) choices d) growth. Because of this "stickiness", the government can improve macroeconomic conditions through fiscal and monetary policy. Answer: Correct Answer: C. Explanation: Economics studies the choices made by people to satisfy their needs and wants, using scarce resources. The same microeconomic laws of supply and demand that operate in individual goods markets were understood to interact between individuals markets to bring the economy into a general equilibrium, as described by Leon Walras. Meanwhile, microeconomics looks at economic tendencies, or what can happen when individuals make certain choices. Economics is the study of the production and distribution of goods and services. The link between goods markets and large-scale financial variables such as price levels and interest rates was explained through the unique role that money plays in the economy as a medium of exchange by economists such as Knut Wicksell, Irving Fisher, and Ludwig von Mises. a. Properly applied, economic theories can offer illuminating insights on how economies function and the long-term consequences of particular policies and decisions. While the term "macroeconomics" is not all that old (going back to the 1940s), many of the core concepts in macroeconomics have been the focus of study for much longer. Elements of earlier work from the likes of Adam Smith and John Stuart Mill clearly addressed issues that would now be recognized as the domain of macroeconomics. ANS: C The real world is also decidedly complicated and includes matters of social preference and conscience that do not lend themselves to mathematical analysis. While New Keynesians do accept that households and firms operate on the basis of rational expectations, they still maintain that there are a variety of market failures, including sticky prices and wages. If the government Likewise, it can be invaluable to understand which theories are in favor and influencing a particular government administration. Macroeconomics is a rather broad field, but two specific areas of research are representative of this discipline. In a way, advertising leads to deadweight welfare loss. It is narrower in scope than microeconomics. Which of the following best describes the classical view of economics? (Human effort is effected economics , but outside economic theory) A4. 3. An economy that's a mixture of a market and command economy C. An economy in which products are a direct result of the beliefs and customs of the population D. An economy in which governments avoid all possible interference in a free market economists classify all of the following as capital except one. Which of the following best describes an opportunity cost? b. firms make profits. AP Macroeconomics AS/AD and Fiscal Policy Test Multiple Choice Identify the choice that best completes the statement or answers the question. a) money b) happiness c) choices d) growth . 5. There are two sides to the study of economics: macroeconomics and microeconomics. Macroeconomics in its modern form is often defined as starting with John Maynard Keynes and his theories about market behavior and governmental policies in the 1930s; several schools of thought have developed since. In particular the Austrian business cycle theory explains broadly synchronized (macroeconomic) swings in economic activity across markets as a result of monetary policy and the role that money and banking play in linking (microeconomic) markets to each other and across time. Throughout the 20th century, Keynesian economics, as Keynes' theories became known, diverged into several other schools of thought. By better understanding economics and the ramifications of economic decisions, investors can get at least a glimpse of the probable future and act accordingly with confidence. Economics Economics For Today Which of the following best describes an entrepreneur? a.the change in automobile sales due to a change in the price of automobiles asked Jan 29, 2016 in Nursing by Cazetta. Which of the following can best be characterized as a subject of macroeconomics? Put simply, it focuses on the way the economy performs as a whole and then analyzes how different sectors of the economy relate to one another to understand how the aggregate functions. Macroeconomics studies economy-wide phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment. Macroeconomics, as it is in its modern form, is often defined as starting with John Maynard Keynes and the publication of his book The General Theory of Employment, Interest, and Money in 1936. Economics is the study of government programs supporting peace treaties. ***my answer (Northern states depended on cotton planters, and southern states depended on … Keynesian economists believe that the business cycle can be managed by active government intervention through fiscal policy (spending more in recessions to stimulate demand) and monetary policy (stimulating demand with lower rates). C. Energy from the environment to fuel production. Which of the following best describes why this theory would be used? A study of how traditional economies can succeed through adopting new strategies. Adam Smith's classic 18th-century work, An Inquiry into the Nature and Causes of the Wealth of Nations, which advocated free trade, laissez-faire economic policy, and expanding the division of labor, was arguably the first, and certainly one of the seminal works in this body of research. ____ 1. b. Weight is usually more retarded than height. Which of the following best describes the opportunity cost of attending a free concert at the local coffee shop? The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles. Strayer University, Washington • ECO 100, Dallas County Community College • ECON 2302, Dallas County Community College • ECONOMICS 2302. 1. Answers: It is concerned with the expansion of a small business into a large corporation. Keynesians focus on aggregate demand as the principal factor in issues like unemployment and the business cycle. Most of these children have subnormal intelligence. C) we make choices in the face of scarcity. Which of the following statements best describes a product that is considered inelastic? Development economics is a branch of economic study that focuses on improving fiscal, economic, and social conditions in developing countries. )Which of the following best describes a political cartoon A. D. Human effort and ideas that drive production. It is also important to understand the limitations of economic theory. Factors studied in both microeconomics and macroeconomics typically have an influence on one another. someone who studies economics a person who buys goods and services a business owner who sells clothes a farmer who sells his crops Weegy: B. Macroeconomics focuses on the role of the government in the economy, while microeconomics focuses on the role of the individua An examination of inflation. An economy in which the means of production are privately owned and operated for profit B. c. A study of peoples’ interaction with their government and fellow citizens d. A study of how people try to satisfy what appears to be seeming unlimited and … By the 20th century, macroeconomists began to study growth with more formal mathematical models. Selected Answer: It is concerned with the expansion and contraction of the overall economy. a. All of these and more can be found in the macroeconomics trivia. User: Which of the following best describes a consumer? Economics Mcqs for Lecturer & Subject Specialist Exams. Course Hero is not sponsored or endorsed by any college or university. This preview shows page 1 - 3 out of 5 pages. Which of the following best describes how an increase in the money supply shift the aggregate demand curve ? Macroeconomics deals with the performance, structure, and behavior of the entire economy, in contrast to microeconomics, which is more focused on the choices made by individual actors in the economy (like people, households, industries, etc.). Total cost divided by the quantity of output produced c. Total variable cost divided by the quantity of output produced d. Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of what? Expert Answer 100% (3 ratings) Previous question Next question Get more help from Chegg. Assume the aggregate supply curve is upward sloping and the economy is in a recession. The nurse is concerned with factors that determine prices and affect resource allo-cation. Superimposed over long term macroeconomic growth trends, the levels and rates-of-change of major macroeconomic variables such as employment and national output go through occasional fluctuations up or down, expansions and recessions, in a phenomenon known as the business cycle. Economic growth refers to an increase in aggregate production in an economy. 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