Revision Sheet
Microeconomics and Macroeconomics
1. Predicting how consumers will react to higher gasoline prices
a. Macroeconomics
b. Microeconomic
2. Measuring the rate of unemployment
a. Macroeconomics
b. Microeconomic
3. Studying how consumer demand reacts to advertising
a. Macroeconomics
b. Microeconomic
4. Advising a corporation about an investment proposal
a. Macroeconomics
b. Microeconomic
5. Understanding how mandatory health insurance will affect small
business
a. Macroeconomics
b. Microeconomic
6. Explaining the relationship between interest rates and the money supply
a. Macroeconomics
b. Microeconomic
7. Identifying the cheapest method of producing textbooks
a. Macroeconomics
b. Microeconomic
8. Predicting how higher US inflation will affect the international value of
the dollar
a. Macroeconomics
b. Microeconomic
9. Predicting how an increase in the price of pizza will affect the total
revenue of a pizza restaurant
a. Macroeconomics
b. Microeconomic
10.The branch of economics that studies national and international
economies.
a. Scarcity
b. Marginal
c. Microeconomics
d. Macroeconomics
Positive and Normative Economics
1. Which of the following statements is normative?
a. Printing too much money causes inflation
b. People work harder if the wage is higher.
c. The unemployment rate should be lower.
d. Government deficits cause an economy to grow more slowly.
2. Which of the following statements concerning the distinction between
positive and normative economics is true?
a. Positive statements are concerned with what the economics is truly described
while normative statements are concerned with that someone thinks should
be.
b. Positive statements are concerned with what people think, while normative
statements are concerned with what people do.
c. Positive statements are true while normative statements are false.
d. Positive statements are concerned with what is while normative statements
are concerned with what will be.
3. Positive statements are...
a. Statements that can't be refuted
b. Statements that can use data and facts to confirm or refute
c. true statements
d. false statements
4. A statement that is based on someone's opinion is
a. normative statement
b. positive statement
c. an economizing problem
d. specialization
5. The branch of economics that studies national and international
economies.
a. Scarcity
b. Marginal
c. Microeconomics
d. Macroeconomics
6. The difference between positive and normative Economics is:
a. Positive Economics explains the performance of the economy while normative
Economics finds out the reasons for poor performance.
b. Positive Economics describes the facts of the economy while normative
Economics involves evaluating whether some of these are good or bad for the
welfare of the people.
c. Normative Economics describes the facts of the economy while positive
Economics involves evaluating whether some of these are good or bad for the
welfare of the people.
d. Positive Economics prescribes while normative Economics describes.
7. Which of the following is a normative economic statement?
a. Unemployment rate decreases with industrialization
b. Economics is a social science that studies human behaviour.
c. The minimum wage should be raised to 200/- per day
d. India spends a huge amount of money on national defence.
8. An example of ‘positive’ economic analysis would be:
a. an analysis of the relationship between the price of food and the quantity
purchased.
b. Determining how much income each person should be guaranteed.
c. Determining the ‘fair’ price for food.
d. Deciding how to distribute the output of the economy.
9. Which of the following is a normative statement?
a. Planned economies allocate resources via government departments.
b. Most transitional economies have experienced problems of falling output and
rising prices over the past decade.
c. There is a greater degree of consumer sovereignty in market economies than
planned economies.
d. Reducing inequality should be a major priority for mixed economies.
10. Economists regard decision making as important because:
a. The resources required to satisfy our unlimited wants and needs are finite, or
scarce.
b. It is crucial to understand how we can best allocate our scarce resources to
satisfy society’s unlimited wants and needs.
c. Resources have alternative uses.
d. All the above.
Economic Systems
1. The four types of economic systems are:
a. Traditional, Command, Mixed, & Market
b. Traditional, Command, Combined, & Market
c. Communism, Capitalism, Free Market, and Macroeconomics
d. Microeconomics, Macroeconomics, Individual, and Traditional.
2. Which of the following is an economic system in which economic
decisions are made according to social roles & culture?
a. Market economy
b. Command economy
c. Traditional economy
d. Mixed economy
3. Which of the following is an economic system in which a central,
governmental authority decides how to use a country's scarce
resources?
a. Market economy
b. Command economy
c. Traditional economy
d. Mixed economy
4. What type of economy do most countries in the world have?
a. Market economy
b. Command economy
c. Traditional economy
d. Mixed economy
5. Capitalism flourishes here in this economic system.
a. Traditional
b. Market
c. Command
d. Mixed
6. In the economy of the bushmen of the Kalahari Desert, the people follow
the examples of their ancestors. This is what kind of economy?
a. Traditional
b. Market
c. Command
d. Centrally planned
7. If I produce meat but, the government has to check to make sure I can
put this product on the market, what economic system is this?
a. Mixed
b. Traditional
c. Market
d. Command
8. In a mixed economy, what is one responsibility of the government?
a. To own all of the goods and services
b. To sell all of the goods and services
c. Makes laws that help keep consumers safe by banning unsafe goods
d. Stop people from buying the goods they need
9. When supply and demand decides what the market produces it is what
type of economy?
a. Market
b. Command
c. Mixed
d. Traditional
10.Disadvantages of this economic system are environmental damage &
poor working conditions.
a. Market
b. Mixed
c. Command
d. Traditional
