Macroeconomics and Microeconomics Overview

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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?

Market dynamics between producers and consumers Signup and view all the answers

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

Microeconomics Signup and view all the answers

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

Individuals' day-to-day consumption decisions Signup and view all the answers

What market structure involves one seller and only one buyer?

Duopsony Signup and view all the answers

In which market structure are there only two suppliers?

Duopoly Signup and view all the answers

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

Bilateral oligopoly Signup and view all the answers

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

Monopsony Signup and view all the answers

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

Duopsony Signup and view all the answers

Which market structure is a subset of oligopoly?

Duopoly Signup and view all the answers

What is a characteristic of an elastic supply curve?

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

When is the quantity supplied considered unitary elastic?

When the change in quantity supplied equals the price change Signup and view all the answers

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

Price changes do not affect the quantity supplied Signup and view all the answers

How does the time horizon affect the supply elasticity?

Longer time horizons make supply more elastic Signup and view all the answers

'Perfectly price elastic' supply means that:

Price changes have no effect on the quantity supplied Signup and view all the answers

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

Supply can be increased by working more intensively at existing facilities 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?

Substitute goods Signup and view all the answers

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

Expectation of future increase in price Signup and view all the answers

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

Increase in population Signup and view all the answers

Which situation exemplifies complementary goods?

Using a car without gasoline 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?

Occasional or seasonal products 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?

Decrease in demand 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?

Direct tax 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?

Relocation of firms to regions with cheaper labor Signup and view all the answers

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

They have a higher value Signup and view all the answers

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

To raise income for government expenses 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?

Leads to outsourcing of labor-intensive jobs Signup and view all the answers

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

The function of their jobs Signup and view all the answers