Macro-Economics Quiz 1

In a command economy, the ______ either makes most economic decisions itself or a least strongly influences how the decisions are made.

• Market

• Firm

• Government

• Business Sector

Because of their relatively small national economics, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?

• Division of Labor

• Command Economy

• International Trade

• Economies of Scale

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

• Wage Levels

• The Macroeconomy

• The Firm's Income

• Household Income

In a _______, Most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.

• Market-Oriented Economy

• Command Economy

• Microeconomy

• Macroeconomy

Which of the following is generally accepted as a valid criticism of the production of useful goods and services?

• Government Involvement

• Environmental Pollution

• Economic Freedom

• The Black Market

If macroeconomics looks at the economy as a whole, it focuses on which of the following?

• The division of Labor

• Business Firms

• Unemployed People

• Households

In the _______, households work and receive payment from firms.

• Financial Investment Market

• Savings Market

• Labor Market

• Financial Capital Market

Which of the following best describes a monetary policy tool?

• Interest Rates

• Government Spending

• Taxes

• Household Savings

Which of the following best describes a fiscal policy tool?

• Government Spending

• Household Spending

• Financial Capital Markets

• Bank Lending

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, and fiscal policy, which involves _________ spending.

• Household

• Capital Market

• Business

• Government