microeconomics & macroeconomics

What does economics study?

• Only the rich

• Only businesses

• The welfare of all people

• Only the environment

What does microeconomics focus on?

• The entire economy

• Individuals and businesses

• Government policies

• International trade

What does macroeconomics study?

• A business at a specific point in time

• The entire economy of a country

• How families spend money

• The price of a product

What happens when the economy is growing?

• Businesses can hire more workers

• People stop shopping

• Prices of everything decrease

• Businesses close down

What is one of the tasks of the central bank?

• Set prices for all products

• Control bank lending and interest rates

• Manage all businesses in a country

• Collect taxes from citizens

What happens when the overall economy is growing?

• Companies are able to hire more workers

• The prices of all goods decrease

• The unemployment rate increases

• The government stops collecting taxes

Which of the following questions is NOT studied in microeconomics?

• How individuals spend their budget

• How companies determine the prices of their products

• How the government controls national economic growth

• How companies decide the number of workers they need to hire

What are the main tools of the government in macroeconomics?

• Stock market and employment agencies

• Monetary policy and fiscal policy

• Education and infrastructure investment

• International trade agreements

Who is responsible for implementing monetary policy?

• Central bank

• President

• Private enterprises

• Labor unions

What is the main objective of fiscal policy?

• Control inflation and unemployment

• Manage government spending and taxes

• Regulate businesses and workers' wages

• Increase stock market profits