Market Segmentation Quiz

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Which of the following is NOT a typical topic in macroeconomics?

Output

Inflation

Employment

Microeconomics (correct)

What is a fallacy of composition?

The error of assuming that what is true for a group is true for individuals

The error of assuming that what is true for one group is true for another group

The error of assuming that what is true for one person is true for another person

The error of assuming that what is true for individuals is true for a group (correct)

What is an example of market failure?

Monopsony

Monopoly

Perfect competition (correct)

Oligopoly

Which approach measures the sum of all spending on consumption, investment, government purchases, and net exports?

Expenditure Approach Signup and view all the answers

What is the biggest sector in countries like Austria?

Tertiary Sector - Services Signup and view all the answers

Why do we use real GDP for time comparisons?

Real GDP changes at constant prices Signup and view all the answers

What is the main difference between GDP and the Human Development Index (HDI)?

HDI combines income, education, and life expectancy Signup and view all the answers

What can the government do to fight inflation through fiscal policy?

All of the above Signup and view all the answers

When are deficit rules problematic?

When they prevent necessary investments Signup and view all the answers

Why was the 60% public debt threshold chosen under unrealistic growth assumptions in the 1990s?

To address the climate crisis Signup and view all the answers

According to the Keynesian model, why can there be persistent unemployment?

Insufficient aggregate demand Signup and view all the answers

According to the Keynesian model, why don't firms invest more if saving is increased?

Decreased sales and profits Signup and view all the answers

What are passive labor market policies?

Unemployment benefits Signup and view all the answers

Which of the following is NOT a duty of the central bank?

Issuing government currency Signup and view all the answers

What powers does a sovereign government have when it comes to money and currencies?

Cannot go bankrupt Signup and view all the answers

What is the purpose of legal tender laws?

To create demand for a currency Signup and view all the answers

What is the top of the pyramid of liabilities in the financial system?

Central bank money Signup and view all the answers

What is the difference between inflation and a one-off price rise?

Inflation is a continuous rise in the price level, while a one-off price rise is temporary Signup and view all the answers

What are the effects of unemployment?

All of the above Signup and view all the answers

What are the four types of unemployment mentioned in the text?

Frictional, seasonal, structural, and cyclical Signup and view all the answers

How is full employment defined according to the text?

A state where all eligible individuals who are willing and able to work can find jobs at prevailing wage rates Signup and view all the answers

How is the (real) wage determined in the simple neoclassical model?

By labor demand and labor supply Signup and view all the answers

Which one of these is an example of fiscal policy?

Increasing government spending Signup and view all the answers

Which one of these is a characteristic of neoclassical economics?

Rational expectations and efficient markets Signup and view all the answers

What kind of data is survey data?

Sample data Signup and view all the answers

What does GDP measure?

Total market value of goods and services produced Signup and view all the answers