The basic tools of supply and demand are______________
A. useful only in the analysis of economic behavior in individual markets.
B. useful in analyzing the overall economy, but not in analyzing individual markets.
C. central to microeconomic analysis, but seldom used in macroeconomic analysis.
D. central to macroeconomic analysis as well as to microeconomic analysis.
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Which of the following statistics is usually regarded as the best single measure of a society’s economic well-being?______________
A. the unemployment rate
B. the inflation rate
C. gross domestic product
D. the trade deficit
For an economy as a whole,______________
A. wages must equal profit.
B. consumption must equal saving.
C. income must equal expenditure.
D. the number of buyers must equal the number of sellers.
If an economy’s GDP rises, then it must be the case that the economy’s______________
A. income rises and saving falls.
B. income and saving both rise.
C. income rises and expenditure falls.
D. income and expenditure both rise.
Most goods and services produced at home______________
A. and most goods and services produced illegally are included in GDP.
B. are included in GDP while most goods and services produced illegally are excluded from GDP.
C. are excluded from GDP while most goods and services produced illegally are included in GDP
D. and most goods and services produced illegally are excluded from GDP.
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