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Macroeconomics and Microeconomics Overview
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Macroeconomics and Microeconomics Overview

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Questions and Answers

What is the main focus of macroeconomics?

  • Studying individual economic behavior
  • Exploring national economic indicators and development (correct)
  • Analyzing market behavior in particular industries
  • Examining the behavior of people and businesses in markets
  • What does microeconomics primarily study?

  • Factors influencing individual economic choices (correct)
  • Market behavior in specific industries
  • National income and employment levels
  • Setting prices of goods
  • Which topic is NOT discussed in microeconomics as per the text?

  • Individual decision-making
  • Market behavior and pricing strategies (correct)
  • Firm's costs and outputs
  • Principles and elasticity of demand and supply
  • What is the main focus of microeconomics according to the text?

    <p>Market dynamics between producers and consumers</p> Signup and view all the answers

    Which field is referred to as the 'Price Theory' in the text?

    <p>Microeconomics</p> Signup and view all the answers

    What is a key problem that microeconomics deals with according to the text?

    <p>Individuals' day-to-day consumption decisions</p> Signup and view all the answers

    What market structure involves one seller and only one buyer?

    <p>Duopsony</p> Signup and view all the answers

    In which market structure are there only two suppliers?

    <p>Duopoly</p> Signup and view all the answers

    Which market structure involves significant degrees of seller and buyer concentration?

    <p>Bilateral oligopoly</p> Signup and view all the answers

    What type of market structure is characterized by a single buyer dealing with many small suppliers?

    <p>Monopsony</p> Signup and view all the answers

    Which market situation describes a condition with only two buyers and many sellers?

    <p>Duopsony</p> Signup and view all the answers

    Which market structure is a subset of oligopoly?

    <p>Duopoly</p> Signup and view all the answers

    What is a characteristic of an elastic supply curve?

    <p>A small price change results in a greater change in quantity supplied</p> Signup and view all the answers

    When is the quantity supplied considered unitary elastic?

    <p>When the change in quantity supplied equals the price change</p> Signup and view all the answers

    What does it mean when the supply is 'perfectly price inelastic'?

    <p>Price changes do not affect the quantity supplied</p> Signup and view all the answers

    How does the time horizon affect the supply elasticity?

    <p>Longer time horizons make supply more elastic</p> Signup and view all the answers

    'Perfectly price elastic' supply means that:

    <p>Price changes have no effect on the quantity supplied</p> Signup and view all the answers

    What happens to supply in the short run when there is a rise in demand or price?

    <p>Supply can be increased by working more intensively at existing facilities</p> Signup and view all the answers

    Which type of goods are interchanged with another good, usually offered at a lower price, making them more attractive to customers?

    <p>Substitute goods</p> Signup and view all the answers

    What may lead to an increase in current demand for a product or service?

    <p>Expectation of future increase in price</p> Signup and view all the answers

    Which factor can cause a decline in the demand for some goods or services?

    <p>Increase in population</p> Signup and view all the answers

    Which situation exemplifies complementary goods?

    <p>Using a car without gasoline</p> Signup and view all the answers

    What kind of products may experience a change in demand due to various events and seasons within the year?

    <p>Occasional or seasonal products</p> Signup and view all the answers

    If customers expect the price of a product to decrease in the future, what impact is likely on the current demand?

    <p>Decrease in demand</p> Signup and view all the answers

    Which type of tax is imposed by the government on income and wealth from households and businesses to raise government revenue?

    <p>Direct tax</p> Signup and view all the answers

    What might be a consequence for labor-intensive businesses when a floor price is imposed on the wage rate?

    <p>Relocation of firms to regions with cheaper labor</p> Signup and view all the answers

    Why are workers with a high marginal product perceived as more valuable by firms?

    <p>They have a higher value</p> Signup and view all the answers

    What is the main purpose of taxation according to the text?

    <p>To raise income for government expenses</p> Signup and view all the answers

    How does a higher mandated minimum wage rate compared to the free market wage rate affect labor markets and businesses?

    <p>Leads to outsourcing of labor-intensive jobs</p> Signup and view all the answers

    What determines the value of workers in firms based on the text?

    <p>The function of their jobs</p> Signup and view all the answers

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