Questions from Macroeconomics

Q: Classify the following topics as relating to microeconomics or macroeconomics.

Classify the following topics as relating to microeconomics or macroeconomics. a. a family’s decision about how much income to save b. the effect of government regulations on auto emissions c. the im...

Q: Name one economic interaction that isn’t covered by the simplified circular-

Name one economic interaction that isn’t covered by the simplified circular-flow diagram.

Q: Suppose that in the United States, producing an air- craft

Suppose that in the United States, producing an air- craft takes 10,000 hours of labor and producing a shirt takes 2 hours of labor. In China, producing an aircraft takes 40,000 hours of labor and pro...

Q: England and Scotland both produce scones and sweaters. Suppose that an

England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hou...

Q: If two parties trade based on comparative advantage and both gain,

If two parties trade based on comparative advantage and both gain, in what range must the price of the trade lie?

Q: If the economy goes into a recession and incomes fall, what

If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods? a. Prices and quantities both rise. b. Prices and quantities both fall. c. Prices rise and quanti...

Q: Over the past 40 years, technological advances have reduced the cost

Over the past 40 years, technological advances have reduced the cost of computer chips. How do you think this has affected the market for computers? For computer software? For typewriters?

Q: What are the supply schedule and the supply curve, and how

What are the supply schedule and the supply curve, and how are they related? Why does the supply curve slope upward?

Q: An increase in the supply of a good will decrease the total

An increase in the supply of a good will decrease the total revenue producers receive if a. the demand curve is inelastic. b. the demand curve is elastic. c. the supply curve is inelastic. d. the supp...

Q: When the government imposes a binding price floor, it causes

When the government imposes a binding price floor, it causes a. the supply curve to shift to the left. b. the demand curve to shift to the right. c. a shortage of the good to develop. d. a surplus of...