MacroEconomics

Question 1

is a social science concerned with the production, distribution and consumption of goods and services

Answer 1

Economics

Question 2

deals with question that whether economics falls into the category of science or arts.

Answer 2

Nature of Economics

Question 2

Deals with systematic studies that signify the cause and effect relationship

Answer 2

Economics as Science

Question 3

It is said that knowledge is science, action is art

Answer 3

Economic as Art

Question 4

used to solve various economic problems in society

Answer 4

Economic theory

Question 5

4 factor of economics

Answer 5

labor, land,capital and entrepreneurship.

Question 6

shows the flow of money goods and services in an economy

Answer 6

The circular flow model

Question 7

presents all the individuals as families that make up the economy

Answer 7

household

Question 8

all the businesses that produce goods and serviced in the economy

Answer 8

firm

Question 9

government and all the public institutions involved in the economy

Answer 9

government

Question 10

all the actors outside the domestic economy

Answer 10

foreign sector

Question 11

financial institutions

Answer 11

financial sector

Question 12

Two sector

Answer 12

household and firms

Question 13

three sector

Answer 13

household, firms and government

Question 14

Four sector

Answer 14

household, firms, goverment and foe

Question 15

shows the continuous flow of goods and payments between firms and household.

Answer 15

Circular flow model of output and income

Question 16

top half of Circular flow model of output and income

Answer 16

Factor Market

Question 17

bottom half of Circular flow model of output and income

Answer 17

Product Market

Question 18

demonstrate how money moves through society

Answer 18

circular flow income model

Question 19

injection-introduction of income into the flow

Answer 19

in flows

Question 20

leakages withdrawal of income from the flow

Answer 20

outflow

Question 21

refers how an increase in one economic activity can cause an increase throughout many other related economic activities

Answer 21

Multiplier effect

Question 22

Types of multiplier

Answer 22

keynesian multiplier, fiscal multiplier, employment multiplier, investment multiplier,trade multiplier, money multiplier

Question 23

-also knows as income or expenditure multiplier
-assesses how changes in spending by household, businesses or the government ripple through the economy.
↑government spending- ↑economy

Answer 23

keynesian multiplier

Question 24

states that output (Q) is a function (f) of: (is determined by) the factor inputs, land (L), labour (La), and capital (K), i.e -Q = F {(L)(LA)(K)}

Answer 24

PRODUCTION FUNCTION

Question 25

focus exclusively on the impact of changes in government fiscal policy

Answer 25

fiscal multiplier

Question 26

shows how creating or losing a certain number of jobs in one industry or sector can lead to the creation or loss of additional jobs in other related industries or sector.

Answer 26

employment multiplier

Question 27

refers to the impact that changes in a countrys exports and imports have on its economy

Answer 27

trade multiplier

Question 28

shows how an initial deposit into the banking system can lead to a larger increase in the money supply as banks create new loans and deposit

Answer 28

Money Multiplier

Question 29

proportion of a raise that is spent on the consumption of goods and services as opposed to being saved

Answer 29

Marginal prosperity to consume

Question 30

all factors are held constant

Answer 30

ceteris paribus

Question 31

When the price increases, the quantity demanded decreases. When the price decreases, the quantity demanded increases, ceteris peribus.

Answer 31

Law of demand

Question 32

consumers consumes more unit of good per unit of time,his total unity increases, recahes its maximum point, and begin to decrease

Answer 32

Law of Diminishing Marginal Utility

Question 33

a table that shows the quantity demanded of a good or service at different price levels.

Answer 33

demand schedule

Question 34

is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time.

Answer 34

demand curve

Question 35

less demand

Answer 35

contraction in demand

Question 36

(more demand

Answer 36

expansion in demand

Question 37

describes a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price

Answer 37

change in demand

Question 38

economic principle referring to a consumer's desire to buy things.

Answer 38

demand

Question 39

refers to how sensitive demand for a good is compared to changes in other economic factors, such as price or income.

Answer 39

elasticity of demand

Question 40

the price of a product increases, the quantity of rpoduct that suppliers offer will increase, and vice versa ceterus parabus

Answer 40

Law of supply

Question 40

defined as one where a change in price does not significantly impact demand for that product

Answer 40

Inelasticity

Question 41

is a graphical representation of the quantity of a product that a supplier is willing to offer at any given price.

Answer 41

supply curve

Question 42

also known as total output, is the total supply of goods and services produced within an economy at a given overall price in a given period.

Answer 42

aggregate supply

Question 42

is a chart that shows how much product a supplier will have to produce to meet consumer demand at a specified price based on the supply curve.

Answer 42

supply schedule

Question 43

Determinants of Aggregate Supply

Answer 43

wages, energy prices, technology, capital stock

Question 43

refers to a shift, either to the left or right, in the entire price-quantity relationship that defines a supply curve.

Answer 43

change in supply

Question 43

an economic measurement that calculates how closely the price of a product or service is related to the quantity supplied. In other words, it shows how a change in price will affect suppliers’ willingness to produce the good or service.

Answer 43

price elasticity of supply

Question 44

where supply is infinite at any one price

Answer 44

Perfectly elastic

Question 45

where only one quantity can be supplied.

Answer 45

Perfectly inelastic

Question 46

which graphically is shown as a linear supply curve coming from the origin.

Answer 46

Unit elasticity

Question 47

is a bookkeeping system that a government uses to measure the level of the country's economic activity in a given time period

Answer 47

national income accounting

Question 48

is a measure of a nation’s economic activity by measuring the value of all the finished goods and services produced by a nation’s economy in one year by its nationals.

Answer 48

Gross National Product

Question 49

total value of all goods and services produced and services produced within a country's borders during a specific time period.

Answer 49

Gross domestic product

Question 50

measured in current market prices without adjusting for inflation or deflation

Answer 50

nominal gdp

Question 51

adjust nominal gdp for changes in the price level

Answer 51

real gdp

Question 52

Measures the income or earnings received by the country’s factors of production (

Answer 52

INCOME APPROACH

Question 53

Measures the amount spent or paid (expended) on all goods and services during the year at market value or prices.

Answer 53

EXPENDITURE APPROACH

Question 54

a is a measurement of the GDP per person in a country’s population

Answer 54

GDP per capita

Question 55

compares the year-over-year (or quarterly) change in a country’s economic output to measure how fast an economy is growing.

Answer 55

GDP Growth Rate

Question 56

also known as the spending approach, calculates spending by the different groups that participate in the economy.

Answer 56

EXPENDITURE APPROACH

Question 57

estimates the total value of economic output and deducts the cost of intermediate goods that are consumed in the process (like those of materials and services)

Answer 57

production approach

Question 58

calculates the income earned by all the factors of production in an economy,

Answer 58

INCOME APPROACH

Question 59

It is the sum of all income earned by citizens or nationals of a country

Answer 59

Gross national income