Question 1

A key indicator of the hardship experienced during the Great Depression is the:
A)high rate of inflation.
B)high rate of unemployment.
C)large trade deficits.
D)large budget deficits.

Accepted Answer

The Great Depression was a period of extremely high unemployment.

Question 2

The standard of living in an economy is best measured by:
A)average labor productivity.
B)total output.
C)output per person.
D)the inflation rate.

Accepted Answer

Standard of living, regularly measured as Real GDP per capita, indicates how much the average person produces and thus, how much goods and services are available to the typical person.

Question 3

Government actions designed to affect the performance of the economy as a whole are called ________ policies.
A)global
B)microeconomic
C)macroeconomic
D)social

Accepted Answer

Macroeconomic policies are government policies designed to affect the performance of the economy as a whole.

Question 4

If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:
A)doubles.
B)increases, but by less than 100 percent.
C)remains constant.
D)decreases.

Accepted Answer

Because of population growth, improvements in the general standard of living are measured by output per person. If total output is doubled, while the population increases by 50 percent, then the output per person and the nation's living standards will increase by less than 100 percent.

Question 5

If Country A and Country B have the same population size, then the standard of living in these two countries can still be different depending on:
A)their respective political systems.
B)their respective inflation rates.
C)their relative geographic size.
D)the relative sizes of total output.

Accepted Answer

Because of population growth, increases in total output cannot be equated with improvements in the general standard of living. Instead output per person is a better indicator of the average living standard. So two nations with the same population size can have different living standards if the level of output produced and shared within each nation is different.

Question 6

The field of macroeconomics developed when economists looked for causes of:
A)the wealth of nations.
B)the Great Depression.
C)World War I.
D)poverty and inflation.

Accepted Answer

Macroeconomics first developed as a subfield of economics in response to the severity and hardship of The Great Depression in the 1930s.

Question 7

Most economists who have studied it believe that the Great Depression was caused by:
A)the stock market crash.
B)poor economic policymaking.
C)illegal immigration.
D)a sharp decline in average labor productivity.

Accepted Answer

Among economists who study this time period today, the most widely accepted cause of the Great Depression is poor economic policymaking both in the United States and in other nations.

Question 8

People who enjoy high standards of living usually have all of the following EXCEPT:
A)higher literacy rates.
B)longer life expectancies.
C)freedom from scarcity.
D)better general health.

Accepted Answer

Standard of living, regularly measured as Real GDP per capita, indicates how much the average person produces and thus, how much goods and services are available to the typical person. But no matter how high a nation's standard of living is, there will always be a limit to the resources available and therefore scarcity.

Question 9

If Country A and Country B have the same total output, then the standard of living in these two countries can be different depending on:
A)their respective political systems.
B)their respective inflation rates.
C)their relative geographic size.
D)population size.

Accepted Answer

Because of population growth, increases in total output cannot be equated with improvements in the general standard of living. Instead output per person is a better indicator of the average living standard. So two nations with the same level of output produced can have different living standards if the population sharing that output is different.

Question 10

The Great Depression:
A)occurred only in the United States.
B)resulted in the development of microeconomics.
C)was a period of low production and high unemployment.
D)ended a few months after the stock market crash of 1929.

Accepted Answer

The Great Depression was a period of low production and extremely high unemployment that lasted throughout the 1930s.

Question 11

The degree to which people have access to goods and services that make their lives easier, healthier, safer, and more enjoyable is called the:
A)microeconomic standard.
B)global standard.
C)scarcity standard.
D)standard of living.

Accepted Answer

Standard of living, regularly measured as Real GDP per capita, indicates how much the average person produces and thus, how much goods and services are available to the typical person.

Question 12

Among economists today, the most widely accepted cause of the Great Depression is:
A)poor economic policymaking.
B)wild stock market speculation on Wall Street.
C)globalization.
D)Adolf Hitler's election as Chancellor of Germany.

Accepted Answer

Among economists who study this time period today, the most widely accepted cause of the Great Depression is poor economic policymaking both in the United States and in other nations.

Question 13

When comparing the standard of living in two countries it is important to adjust total output for differences in:
A)geographic area.
B)employment levels.
C)political systems.
D)population.

Accepted Answer

Because of population growth, increases in total output cannot be equated with improvements in the general standard of living. Instead output per person is a better indicator of the average living standard. So two nations with the same level of output produced can have different living standards if the population sharing that output is different.

Question 14

If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 200 million, then output per person:
A)doubles.
B)increases, but by less than 100 percent.
C)remains constant.
D)decreases.

Accepted Answer

Because of population growth, improvements in the general standard of living are measured by output per person. If total output is doubled, and the population doubles too, then the output per person and the nation's living standards will remain the same.

Question 15

If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 250 million, then output per person:
A)doubles.
B)increases, but by less than 100 percent.
C)remains constant.
D)decreases.

Accepted Answer

Because of population growth, improvements in the general standard of living are measured by output per person. If total output is doubled, while the population more than doubles, then the output per person and the nation's living standards will decrease as the increase in output is not enough to keep up with population growth.

Question 16

ALL of the following describe economic conditions during the Great Depression in the United States EXCEPT:
A)high rates of unemployment.
B)high rates of inflation.
C)low levels of production.
D)a sharp decline in stock prices.

Accepted Answer

The Great Depression was a period of low production, sharp decline in stock prices, and extremely high unemployment that lasted throughout the 1930s.

Question 17

Macroeconomics first developed as a new subfield of economics:
A)when Adolph Hitler ordered economists to learn more about national economies.
B)following the oil price increases of the 1970s.
C)as a result of Adam Smith's publication of The Wealth of Nations in 1776.
D)in response to the severe economic hardships of the Great Depression.

Accepted Answer

Macroeconomics first developed as a subfield of economics in response to the severity and hardship of The Great Depression in the 1930s.

Question 18

If living standards in a country, as measured by output per person, increase, then total output must have:
A)increased more rapidly than population increased.
B)increased at the same rate that population increased.
C)increased more slowly than population increased.
D)decreased more rapidly than population decreased.

Accepted Answer

Because of population growth, improvements in the general standard of living are measured by output per person. So a nation's living standards will increase if total output is growing more rapidly than the population is increasing or if total output is decreasing slower than the population is decreasing.

Question 19

Macroeconomic policies are government policies designed to affect:
A)the environmental impact of all industries.
B)the performance of the economy as a whole.
C)the economic activity of the government.
D)particular sectors of the economy.

Accepted Answer

Macroeconomic policies are government policies designed to affect the performance of the economy as a whole.

Question 20

Since 1950, the standard of living in the United States has:
A)increased when measured by output per person, but decreased when measured by total output.
B)increased when measured by both total output and output per person.
C)decreased when measured by output per person, but increased when measured by total output.
D)decreased when measured by both total output and output per person.

Accepted Answer

Both U.S. real GDP and real GDP per person went up enormously from 1870 to 2010, and especially fast in the years 1950 to 2010.

Quiz 16: Macroeconomics: The Birds Eye View of the Economy

A key indicator of the hardship experienced during the Great Depression is the:

The standard of living in an economy is best measured by:

Government actions designed to affect the performance of the economy as a whole are called ________ policies.

If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:

If Country A and Country B have the same population size, then the standard of living in these two countries can still be different depending on:

The field of macroeconomics developed when economists looked for causes of:

Most economists who have studied it believe that the Great Depression was caused by:

People who enjoy high standards of living usually have all of the following EXCEPT:

If Country A and Country B have the same total output, then the standard of living in these two countries can be different depending on:

The Great Depression:

The degree to which people have access to goods and services that make their lives easier, healthier, safer, and more enjoyable is called the:

Among economists today, the most widely accepted cause of the Great Depression is:

When comparing the standard of living in two countries it is important to adjust total output for differences in:

If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 200 million, then output per person:

If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 250 million, then output per person:

ALL of the following describe economic conditions during the Great Depression in the United States EXCEPT:

Macroeconomics first developed as a new subfield of economics:

If living standards in a country, as measured by output per person, increase, then total output must have:

Macroeconomic policies are government policies designed to affect:

Since 1950, the standard of living in the United States has: