Basics of Micro and Macro Economics

Front

What does economics study? Options: How people, businesses, and governments make decisions about resources, The political systems of different countries, The study of animals and plants, The study of the universe

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How people, businesses, and governments make decisions about resources

Front

What are the two main branches of economics?

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Microeconomics and Macroeconomics

Front

What does microeconomics focus on? Options: The economy as a whole, Individual parts of the economy, The government's role in the economy, The history of economic systems

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Individual parts of the economy

Front

What might microeconomics study in the context of a toy company releasing a new action figure?

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How the price of the action figure affects how many units consumers buy

Front

What does macroeconomics focus on?

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The economy as a whole

Front

Which field of economics might study inflation? Options: Microeconomics, Macroeconomics, Both Microeconomics and Macroeconomics, Neither Microeconomics nor Macroeconomics

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Macroeconomics

Front

Which field of economics might study unemployment? Options: Microeconomics, Macroeconomics, Both Microeconomics and Macroeconomics, Neither Microeconomics nor Macroeconomics

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Macroeconomics

Front

Which field of economics studies how a decrease in overall spending in the economy could lead to a rise in unemployment? Options: Microeconomics, Macroeconomics, Both Microeconomics and Macroeconomics, Neither Microeconomics nor Macroeconomics

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Macroeconomics

Front

How are microeconomics and macroeconomics connected?

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Decisions made by individuals and businesses shape the larger economic trends that macroeconomics studies, and those trends, in turn, affect the decisions made by individuals and businesses.

Front

How can understanding both micro and macroeconomics help us?

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It helps us make informed decisions as consumers, business owners, and policymakers.