Representative Goods in Macroeconomics

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Questions and Answers

What is the purpose of using a representative good in macroeconomics?

To simplify the analysis of how the country's total production and the level of employment are related to attributes (correct)
To study what happens to the many real commodities that are bought and sold in the market
To analyze how individual output levels, prices, and employment levels of different goods are determined
To distinguish the labour of the manager of a firm from the labour of the accountant of the firm

Why do we sometimes depart from using a representative good in macroeconomics?

To distinguish the labour of the manager of a firm from the labour of the accountant of the firm
To understand the interdependence or rivalry between two sectors of the economy (correct)
To simplify the analysis of how the country's total production and the level of employment are related to attributes
To analyze how individual output levels, prices, and employment levels of different goods are determined

What are the three general kinds of commodities that may be taken as a representative of all commodities being produced within the economy?

Agricultural goods, industrial goods, and services (correct)
Agricultural goods, technology goods, and services
Agricultural goods, industrial goods, and labor
Industrial goods, technology goods, and services

What may be overlooked when using a representative good in macroeconomics?

<p>Vital distinctive characteristics of individual goods (D)</p> Signup and view all the answers

Why may a single category of labor not be an effective representative of all kinds of labor?

<p>The labor of the manager of a firm may be unable to distinguish from the labor of the accountant of the firm (A)</p> Signup and view all the answers