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Questions and Answers
What is the primary focus of microeconomics?
What is the primary focus of microeconomics?
- The study of individual consumer behavior and market dynamics (correct)
- The examination of government budgeting and fiscal policy
- The analysis of national income and employment trends
- The investigation of international trade and exchange rates
Which economic concept is represented by the equation: Y = C + I + G + (X - M)?
Which economic concept is represented by the equation: Y = C + I + G + (X - M)?
- Aggregate Demand
- Quantity Theory of Money
- Phillips Curve
- Gross Domestic Product (GDP) (correct)
Which scenario best exemplifies the concept of 'opportunity cost'?
Which scenario best exemplifies the concept of 'opportunity cost'?
- A government decreases taxes to stimulate consumer spending, resulting in a budget deficit.
- A student chooses to study for an exam instead of going to a movie, giving up the enjoyment of the movie for potentially better grades. (correct)
- A country experiences inflation due to excessive money supply, causing a decrease in purchasing power.
- A company invests in new machinery, leading to increased production but also higher maintenance costs.
Which of the following is a characteristic of a perfectly competitive market?
Which of the following is a characteristic of a perfectly competitive market?
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What is the impact of an increase in interest rates on the money supply?
What is the impact of an increase in interest rates on the money supply?
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Which of the following is a fiscal policy tool used to combat inflation?
Which of the following is a fiscal policy tool used to combat inflation?
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