Macroeconomics

Explain the basic distinction between microeconomic analysis and macro

Explain the basic distinction between microeconomic analysis and macroeconomic analysis. Describe the types of issues that each branch of analysis focuses on. What will be an ideal response?   ANSWER Microeconomic analysis focuses on the behavior of individuals, e.g., consumers and firms. It is concerned with such issues as how a firm can produce output […]

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Date: September 10th, 2020

An indifference curve is negatively-sloped because: A) utility is a s

An indifference curve is negatively-sloped because: A) utility is a subjective concept. B) as the consumer obtains additional units of one good, the consumer is willing to sacrifice increasing amounts of the other good. C) in order to remain at the same level of utility, if an individual gets more of one good, he must […]

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Date: September 10th, 2020

Firms have tried a number of different strategies to reduce the negati

Firms have tried a number of different strategies to reduce the negative effects of competition on their ability to earn economic profits. Which of the following strategies is most desirable from the viewpoint of economic efficiency and consumer well being? A) Collusion. B) Price leadership. C) Formation of cartels. D) Investment in research and development. […]

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Date: September 10th, 2020

Consider an indifference curve drawn for movies and pizzas. Which of t

Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false? A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases. B) If the individual consumes more pizzas, the amount of movies consumed […]

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Date: September 10th, 2020

An index, based on a telephone survey of 500 households conducted by t

An index, based on a telephone survey of 500 households conducted by the University of Michigan, that measures households’ attitudes regarding expected business conditions, personal financial conditions, an consumer confidence about purchasing furniture and major household appliances is called the: A) Consumer Sentiment Index. B) Consumer Confidence Index. C) Consumer Satisfaction Index. D) Consumer Consumption […]

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Date: September 10th, 2020

The technique that estimates long-run costs and the minimum efficient

The technique that estimates long-run costs and the minimum efficient scale by determining the scale of operation at which most firms in an industry are concentrated is called the: A) engineering estimation technique. B) statistical cost estimation technique. C) survivor approach. D) back-of-the-envelope approach.   ANSWER C

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Date: September 10th, 2020