Microeconomics 2: Subfields of Economics

What is the study of how households and firms make decisions and how they interact in markets?

Microeconomics

Which subfield of economics studies economy-wide phenomena such as inflation, unemployment, and economic growth?

Macroeconomics

What does GDP stand for?

Gross Domestic Product

What does real GDP exclude to prevent double counting?

Intermediate Goods Signup and view all the answers

What does economic growth refer to?

Increase in aggregate production Signup and view all the answers

Why do economists use real GDP rather than nominal GDP to gauge economic well-being?

Real GDP accounts for changes in price levels Signup and view all the answers

What is the difference between nominal GDP and real GDP?

Real GDP is unaffected by changes in prices, while nominal GDP reflects only changes in the amounts being produced Signup and view all the answers

What is the impact of productivity on the standard of living?

High productivity leads to a high standard of living, while low productivity leads to a more meager existence Signup and view all the answers

How is well-being usually measured in economics?

By real GDP per person Signup and view all the answers

What is disposable income?

Income available after paying taxes and receiving transfers from the government Signup and view all the answers

Which of the following statements is correct regarding disposable income?

Disposable income is the maximum amount of expenditure possible without having to borrow or sell possessions Signup and view all the answers

Which of the following best defines microeconomics?

The study of how households and firms make decisions and interact in markets Signup and view all the answers

What is the primary focus of macroeconomics?

The analysis of aggregate production and economy-wide phenomena Signup and view all the answers

Why do economists use real GDP instead of nominal GDP to gauge economic well-being?

Nominal GDP is not adjusted for inflation Signup and view all the answers

What does GDP exclude to prevent double counting?

Intermediate goods used in final production Signup and view all the answers

What does economic growth refer to?

Increase in aggregate production in an economy over a period of time Signup and view all the answers

What is the primary reason behind dividing economics into microeconomics and macroeconomics?

To examine economy-wide phenomena separately from individual decisions Signup and view all the answers

What is the main reason economists use real GDP instead of nominal GDP to gauge economic well-being?

Real GDP captures changes in the amounts being produced, not affected by price changes. Signup and view all the answers

What is the nominal GDP for the year 2018, based on the given data?

$600 Signup and view all the answers

Which factor does real GDP reflect that nominal GDP doesn't?

Changes in quantities produced Signup and view all the answers

What is the main reason productivity is important in economics?

It determines the growth rate of average income. Signup and view all the answers

What is the measure of well-being typically expressed in per-capita terms as an average income?

GDP per person Signup and view all the answers

What does disposable income represent?

Income available after paying taxes and receiving transfers from the government. Signup and view all the answers

Which statement accurately describes disposable income?

Disposable income is the maximum amount of expenditure possible without having to borrow or sell possessions. Signup and view all the answers

Microeconomics 2: Subfields of Economics

Questions and Answers

What is the study of how households and firms make decisions and how they interact in markets?

Which subfield of economics studies economy-wide phenomena such as inflation, unemployment, and economic growth?

What does GDP stand for?

What does real GDP exclude to prevent double counting?

What does economic growth refer to?

Why do economists use real GDP rather than nominal GDP to gauge economic well-being?

What is the difference between nominal GDP and real GDP?

What is the impact of productivity on the standard of living?

How is well-being usually measured in economics?

What is disposable income?

Which of the following statements is correct regarding disposable income?

Which of the following best defines microeconomics?

What is the primary focus of macroeconomics?

Why do economists use real GDP instead of nominal GDP to gauge economic well-being?

What does GDP exclude to prevent double counting?

What does economic growth refer to?

What is the primary reason behind dividing economics into microeconomics and macroeconomics?

What is the main reason economists use real GDP instead of nominal GDP to gauge economic well-being?

What is the nominal GDP for the year 2018, based on the given data?

Which factor does real GDP reflect that nominal GDP doesn't?

What is the main reason productivity is important in economics?

What is the measure of well-being typically expressed in per-capita terms as an average income?

What does disposable income represent?

Which statement accurately describes disposable income?

More Quizzes Like This

Economics: Microeconomics, Macroeconomics, and Economic Policies

Economics Subfields Quiz: Explore Key Areas

Economics: Microeconomics, Macroeconomics, and Key Concepts Quiz

Economics: Microeconomics vs. Macroeconomics Quiz

Upgrade to continue