Ch.4 Political Economy

Macroeconomics approaches the study of economics from the viewpoints of

• individual firms

• individual consumers

• government units

• the entire economy

A country is said to be experiencing inflation when…

• Prices of most goods and services are rising over time

• Total output is falling over time

• Total output is rising over time

• Prices of most goods and services are falling over time

Which of the following is an macroeconomics statement?

• The price of Ipad increase about 8.5%.

• The inflation rate of Malaysia is 3.1% in 2012.

• FELDA profit increases every year

• The price of chicken increasing during Chinese New Year

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

What does Per Capita Mean?

• Per Household
• Per Object
• Per Worker
• Per Person

What type of economic system allows the government to decide what to produce, how to produce and for whom to produce?

• Market
• Mixed
• Command
• Traditional

What are the 3 economic questions?

• What to produce? How To Produce? For whom to produce?
• Who to produce? Why you produce? Like to produce?
• Why to produce? Tell who to produce? Things to produce?
• What to produce? How to produce? When to produce?

________ is the most basic or fundamental economic problem.

• Scarcity
• Labor
• Greed
• Capital

What type of economy do most countries in the world have?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Scarcity is when...

• there aren't enough resources for everyone

• one business tries to intimidate another

• a company is in danger of losing all of their money

• a company sells too much of its stock