Macroeconomics and Economic Systems Quiz

Introduction to Macroeconomics and Economic Systems

• Macroeconomics deals with the structure and performance of aggregate economic systems.
• The focus is on households, firms, government, and markets.
• Microeconomics deals with choices by consumers, savers, firms, etc., and how these choices come together in the market.
• International economics/globaleconomy is the next step, where different nation-states interact with one another.
• Advanced, market-based, mixed, and open economies are the four types of nation-states.
• Mixed economies have the state as a powerful economic actor.
• Open economies include trade, finance, and migration.
• Economic systems connect different economic agents in different ways: households, businesses, government.
• Firms buy inputs from households and turn them into outputs that are sold by firms to consumers.
• Inputs are raw materials/commodities, labor, and capital.
• Outputs are goods and services.
• Economic indicators include GDP, GDP per capita, population, labor force, employment, unemployment, production, industries, government expenditure, taxes, public debt, balance of payments, international investment position, prices, wages, and financial data.