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Macroeconomics
If Microeconomics helped you build the foundation, Macroeconomics will take you to the top floor.
Microeconomics looks at the individual level and how consumers, households, firms and even industries
make the best choices for themselves. Macroeconomics extends those ideas to the entire
economy. You'll be looking at big picture problems like inflation, unemployment, economic growth,
the role of government and business cycles. Macroeconomics is key to understanding how
our government sets policy, especially in an uncertain time like today.
Below are some sample practice questions for you to test out your understanding and
break down macroeconomics this semester.
1. Macroeconomics deals with
A. individual firms and how they decide how much to produce
B. the economy as a whole
C. individual consumers and how they decide to allocate their budgets to receive the most satisfaction
D. a detailed view of the economy on a microscopic level
E. anti-trust legislation for breaking up tech monopolies like Google and Facebook
2. The term aggregate is most closely related to
A. microeconomics
B. the scientific method
C. normative statements
D. positive analysis
E. macroeconomics
3. The assumption of ceteris paribus or other-things-equal is violated when we
A. look at how simultaneous changes in worker wages and number of firms affect supply of tennis shoes
B. analyze how changes in preferences affect the demand for ice cream
C. consider how changes in income affect demand for popcorn
D. determine using cause-effect analysis what happens to the supply of tennis rackets from an increase in technology
E. break down how an increase in the price of brownies will affect one's demand for chocolate chip cookies
4. The study of microeconomics focuses on
A. inflation and how the government should respond to it
B. unemployment during recessions
C. the huge national debt and necessary changes in government policy to fix it
D. the decisions of individuals
E. the aggregate