1. What is the difference between microeconomics and macroeconomics?
a. Microeconomics focuses on the behavior of individual markets, while macroeconomics focuses on the behavior of the economy as a whole.
b. Microeconomics focuses on the behavior of individual consumers and producers, while macroeconomics focuses on the behavior of the government and the central bank.
c. Microeconomics focuses on the behavior of individual goods and services, while macroeconomics focuses on the behavior of the economy's overall output and income.
d. Microeconomics focuses on the behavior of individual prices, while macroeconomics focuses on the behavior of the general price level.
2. What is the law of supply and demand?
a. The law of supply and demand states that the price of a good or service will rise when supply is high and demand is low.
b. The law of supply and demand states that the price of a good or service will rise when supply is low and demand is high.
c. The law of supply and demand states that the price of a good or service will rise when supply and demand are equal.
d. The law of supply and demand states that the price of a good or service will rise when supply and demand are not equal.
3. What is the role of government in the economy?
a. The role of government in the economy is to provide goods and services that the private sector cannot or will not provide.
b. The role of government in the economy is to regulate the economy to ensure fair competition and protect consumers.
c. The role of government in the economy is to redistribute wealth from the rich to the poor.
d. The role of government in the economy is to all of the above.
4. What is the Federal Reserve System?
a. The Federal Reserve System is the central bank of the United States.
b. The Federal Reserve System is a group of private banks that work together to regulate the money supply.
c. The Federal Reserve System is a government agency that oversees the financial system.
d. The Federal Reserve System is all of the above.
5. What is inflation?
a. Inflation is a sustained increase in the general price level.
b. Inflation is a sustained increase in the money supply.
c. Inflation is a sustained increase in the interest rate.
d. Inflation is a sustained increase in the output of the economy.
6. What are the causes of inflation?
a. The causes of inflation include an increase in the money supply, an increase in demand, and a decrease in supply.
b. The causes of inflation include an increase in government spending, an increase in taxes, and an increase in the price of oil.
c. The causes of inflation include a decrease in the output of the economy, a decrease in the money supply, and a decrease in demand.
d. The causes of inflation include a decrease in government spending, a decrease in taxes, and a decrease in the price of oil.
7. What are the effects of inflation?
a. The effects of inflation include a decrease in the value of money, an increase in the cost of living, and an increase in social unrest.
b. The effects of inflation include an increase in the value of money, a decrease in the cost of living, and a decrease in social unrest.
c. The effects of inflation include a decrease in the value of money, a decrease in the cost of living, and a decrease in social unrest.
d. The effects of inflation include an increase in the value of money, an increase in the cost of living, and an increase in social unrest.
8. What are the policies to control inflation?
a. The policies to control inflation include an increase in the money supply, an increase in demand, and a decrease in supply.
b. The policies to control inflation include an increase in government spending, an increase in taxes, and an increase in the price of oil.
c. The policies to control inflation include a decrease in the output of the economy, a decrease in the money supply, and a decrease in demand.
d. The policies to control inflation include a decrease in government spending, a decrease in taxes, and a decrease in the price of oil.
9. What is unemployment?
a. Unemployment is a situation in which someone who is willing and able to work is unable to find a job.
b. Unemployment is a situation in which someone who is willing and able to work is not looking for a job.
c. Unemployment is a situation in which someone who is willing and able to work is working part-time.
d. Unemployment is a situation in which someone who is willing and able to work is working full-time.
10. What are the causes of unemployment?
a. The causes of unemployment include a decrease in the output of the economy, an increase in the competition for jobs, and an increase in the price of labor.
b. The causes of unemployment include an increase in the output of the economy, a decrease in the competition for jobs, and a decrease in the price of labor.
c. The causes of unemployment include an increase in the output of the economy, an increase in the competition for jobs, and a decrease in the price of labor.
d. The causes of unemployment include a decrease in the output of the economy, a decrease in the competition for jobs, and an increase in the price of labor.