Macroeconomics Exercise

Questions in macroeconomics Instructor: MA. Bui Huy Khoi

Chapter 1

What is economics?
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Question 1

Resources in an economy:

a) Are always fixed
b) Can never decrease
c) Always increase over time
d) Are limited at any moment in time
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Question 2

Human wants are:

a) Always fixed
) Limited
c) Unlimited
d) Likely to decrease over time
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Question 3

The sacrifice involved when you choose a particular course of action is called the:

a) Alternative
b) Opportunity cost
c) Consumer cost
d) Producer cost
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Question 4

Which of the following is not one of the basic economic questions?

a) What to produce
b) Who to produce for
c) How to produce
d) How to maximise economic growth
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Question 5

The basic economic problems will not be solved by:

a) Market forces
b) Government intervention
c) A mixture of government intervention and the free market
d) The creation of unlimited resources
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Question 6

The free market involves:

a) The free provision of products
b) The subsidising of products by the government
c) Market forces of supply and demand
d) All trade via barter
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Question 7

A mixed economy:

a) Has supply but not demand
b) Has demand but not supply
c) Has supply and demand
d) Has market forces and government intervention
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Question 8

In a command (planned) economy:

a) The price mechanism acts as an incentive
b) Resources are allocated by market forces
c) Individual firms make decisions for themselves about what to produce and how to produce it
d) The The public sector is large
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Question 9

The public sector includes:

a) Investors owning companies
b) Government ownership of assets
c) Market forces of supply and demand
d) All trade via barter
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