macroeconomics

Question 1

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

Answer 1

economics

Question 2

like science, it is based on the formulation of theories and laws

Answer 2

economics as a science

Question 3

it is said that “knowledge is science, action is art”

Answer 3

economics as a art

Question 4

studies the small picture, the behavior of individuals and companies and the market for each type of product

Answer 4

micro economics

Question 5

studies the function of the economy of a nation as a whole and economy wide phenomena such as inflation, price levels, rate of economic growth, national income, GDP and changes in employment

Answer 5

macroeconomics

Question 6

Economists create models to
illustrate economic activity. Models that show the interaction between two groups of economic decision-makers
Shows the flow of money,goods
and services in an economy

Answer 6

circular flow

Question 7

5 actors of the economy

Answer 7

household, firm, government, foreign, and financial

Question 8

present all the individuals or families that make up the economy

Answer 8

household sector

Question 9

all the business that produce goods and services in the economy

Answer 9

firm sector

Question 10

government and all the public institution involved in the economy

Answer 10

government sector

Question 11

all the actors outside the domestic economy

Answer 11

foreign sector

Question 12

financial institutions

Answer 12

financial sector

Question 13

two sector are

Answer 13

household, firm

Question 14

three sectors are

Answer 14

household, firm, government

Question 15

four sectors are

Answer 15

household, firm, government, foreign

Question 16

Shows the continuous
flow of goods and
payments between
firms and households

Answer 16

circular flow of output and income

Question 17

Top half of circular flow of output and income

Answer 17

factor market

Question 18

bottom half of circular flow of output and income

Answer 18

product market

Question 19

demonstrate how money moves through society

Answer 19

circular flow of income

Question 20

also known as leakage. it is the withdrawal of income from the flow

Answer 20

outflow

Question 21

also known as injection. it is the introduction of income into the flow

Answer 21

inflow

Question 22

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

Answer 22

multiplier effect

Question 23

what are types of multiplier

Answer 23

keynesian, fiscal, employment, investment, trade, money

Question 24

Focuses exclusively on the impact of changes in government fiscal policy
(government spending or taxation) on the
overall economy

Answer 24

FISCAL
MULTIPLIER

Question 25

Also known as income or expenditure multiplier. Assesses how changes in spending by households, businesses, or the government ripple through the economy, leading to subsequent rounds of spending and income generation

Answer 25

Keynesian Multiplier

Question 26

shows how creating or losing a certain number of jobs in one industry or sector can lead to thecreation or loss of additional jobs inother related industries or sectors.

Answer 26

Employment multiplier

Question 27

refers to the impact that changes in a country export and import 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 deposits

Answer 28

MONEY MULTIPLIER

Question 29

Shows how an initial increase in investment spending by businesses can lead to a larger increase in overall economic activity

Answer 29

Investment multiplier

Question 30

a table that shows that quantity demanded for a good or service at a different price level

Answer 30

demand schedule

Question 31

state the law of demand

Answer 31

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

Question 31

a graphical representation of the relationship between the price of a good or services and the quantity for a given period of time

Answer 31

demand curve

Question 32

factors that influence market demand

Answer 32

Income, Consumer preferences, Buyer expectations, Price, Prices of related items

Question 33

an economic measurement of the total amount of demand for all finished goods and services produced in an economy

Answer 33

Aggregate demand

Question 34

formula of Aggregate Demand

Answer 34

Aggregate Demand=C+I+G+Nx

Question 35

Whether interest rates are rising or falling will affect decisions made by consumers and businesses.

Answer 35

Changes in Interest Rates

Question 36

As household wealth increases, aggregate demand usually increases as well.

Answer 36

Income and Wealth

Question 37

Consumers who feel that inflation will increase or prices will rise, tend to make purchases now, which leads to rising aggregate demand.

Answer 37

Changes in Inflation Expectations

Question 37

If the value of the U.S. dollar falls (or rises), foreign goods will become more (or less expensive).

Answer 37

Currency Exchange Rate Changes

Question 38

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

Answer 38

The elasticity of demand, or demand elasticity,

Question 39

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 39

Supply schedule

Question 40

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

Answer 40

Supply curve

Question 41

If the elasticity quotient is greater than or equal to one, the demand is considered to be

Answer 41

elastic

Question 42

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

Answer 42

inelastic

Question 43

As the price of a product increases, the quantity of product that suppliers offer will increase, and vice versa, ceteris paribus

Answer 43

law of supply

Question 44

Also known as total output. Total supply of goods and services produced within an economy at a given overall price in a given period.

Answer 44

AGGREGATE SUPPLY

Question 45

the amounts of labor, capital, land, and entrepreneurship available

Answer 45

resource quantity

Question 46

the productivity of the four factors of production,

Answer 46

resource quality

Question 46

the prices of the inputs used in production.

Answer 46

resource price

Question 46

This is the price of labor, which works through the resource price determinant.

Answer 46

Wages

Question 47

Improvements in production techniques, often embodied in product inventions and innovations, is a prime example of a resource quality determinant.

Answer 47

Technology

Question 48

These are the prices of key energy inputs, especially petroleum, that are essential to any modern industrialized economy.

Answer 48

Energy Prices

Question 49

This is the total quantity of capital used by the economy for production.

Answer 49

Capital Stock

Question 50

is an economic measurement that calculates how closely the price of a product or service is related to the quantity supplied.

Answer 50

Price elasticity of supply

Question 51

where supply is infinite at any one price.

Answer 51

Perfectly elastic

Question 52

where only one quantity can be supplied.

Answer 52

Perfectly inelastic

Question 53

a relatively small change in price results in a proportionally larger change in the quantity supplied

Answer 53

elastic

Question 54

a change in price leads to a proportionally smaller change in the quantity supplied.

Answer 54

inelastic

Question 55

the percentage change in quantity supplied is exactly equal to the percentage change in price.

Answer 55

unitary elastic