ECO 302 Week 2 Quiz – Strayer NEW



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Chapter 1

TRUE/FALSE

            1.         Macroeconomists study the amount of employment and unemployment.

                                   

            2.         Macroeconomists study the price of individual products like beer.

                                   

            3.         When the gross domestic product is growing, it is called inflation.

                                   

            4.         A recession is when GDP is falling toward a trough.

                                   

            5.         If price is below equilibrium in a market, then quantity supplied will be less than quantity demanded.

                                   

            6.         The annual inflation rate measures the annual percentage growth in the overall price level.

                                   

            7.         The annual inflation rate measures the growth in the prices of oil and food only.

                                   

            8.         Endogenous variables in an economic model are those that the model takes as given and does not try to explain.

                                   

            9.         Exogenous variables in an economic model are those that the model takes as given and does not try to explain.

                                   

            10.       In a model with perfect competition, both buyers and sellers take the price of a good as given.

                                   

MULTIPLE CHOICE

            1.         Macroeconomics deals with:
a.         how individual markets work.
b.         the overall performance of the economy.
c.         relative prices in different markets.
d.         substitution of one good for another good.


                                   

            2.         Macroeconomics includes the study of:
a.         the general price level.            c.         the relative price of goods.
b.         the price of individual goods. d.         all of the above.


                                   


            3.         Macroeconomists study:
a.         the determination of the economy’s total production.
b.         unemployment
c.         the general price level.
d.         all of the above.


                                   

            4.         Macroeconomists study:
a.         the determination of real GDP.
b.         the production of specific goods.
c.         the relative production in different markets.
d.         all of the above.


                                   

            5.         Among the prices that macroeconomist study are:
a.         the price of coffee.      c.         the interest rate.
b.         the price of tea.           d.         all of the above.


                                   

            6.         Among the prices that macroeconomists study are:

a.         the wage rate.  c.         the exchange rate. 

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