SOPHIA ECON102 Unit 1 Challenge 1 Latest 2022 May

ECON102 Macroeconomics

Unit 1 Challenge 1

Macroeconomics would include the study of __________.

a.)household spending

b.)small firms

c.)prices of individual goods

d.)national infrastructures

Which of the following topics can macroeconomics help a person understand?

a.)How to handle your personal finances responsibly

b.)The impact of global trade

c.)What makes a good investment

d.)Decision making on an individual level

In the Circular Flow model, governments __________

a.)act as only consumers of goods and services

b.)consume intermediate goods, before they are taxed

c.)produce some final goods and services

d.)do not interact with firms and households

GDP per capita is often used to measure the ______.

a.)GDP adjusted for inflation

b.)overall GDP growth rate for an economy

c.)gross national product

d.)standard of living

In 2009, the yearly tuition at a state university is $20,000. In 2017, the yearly tuition at the same state university is $31,000.

Using the price of tuition for reference, the inflation rate of the U.S. dollar increased by a factor of __________ in eight years.

a.)1.55

b.)0.35

c.)0.65

d.)1.65

When GDP growth is at its maximum, given current resources, the business cycle is said to be in which phase?

a.)Peak

b.)Contraction

c.)Trough

d.)Expansion

If a central banking authority lowers interest rates in order to encourage more borrowing, which of the following combinations describes this type of policy?

a.)Contractionary fiscal

b.)Expansionary monetary

c.)Expansionary fiscal

d.)Contractionary monetary

Multiple theories exist about the proper role/functions of government.

Many suggest that the government should promote __________, which is funded through ___________.

a.)public goods; progressive taxation

b.)transfer payments; GDP growth

c.)income redistribution; progressive taxation

d.)progressive tax; GDP growth