Microeconomics & Macroeconomics (Cambridge (CIE) IGCSE Economics)

Exam Questions

57 mins26 questions
11 mark

Which person makes macroeconomic decisions?

  • a bank manager

  • a government finance minister

  • a shareholder in a firm

  • a worker

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21 mark

Microeconomics focuses on the study of:

  • The overall economy and its output

  • Individual consumers and firms

  • Government policies and regulations

  • Global trade and international relations

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31 mark

Macroeconomics deals with the:

  • Detailed analysis of individual markets

  • Interactions between individual consumers and firms

  • The behaviour of the overall economy

  • Microscopic factors influencing economic decisions

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41 mark

Microeconomics analyses:

  • The overall economic growth and development of a country

  • The behaviour of industries and firms

  • The impact of fiscal and monetary policies on the economy

  • The relationships between different countries' economies

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51 mark

Which area of economics is concerned with the overall performance and behaviour of the entire economy?

  • Microeconomics

  • Macroeconomics

  • International economics

  • Environmental economics

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11 mark

Economics is divided into two: microeconomics and macroeconomics.

statement 1

When the price of oil falls there is an expansion in demand.

statement 2

The Organization of the Petroleum Exporting Countries (OPEC) can influence the price of oil.

 

Which combination correctly describes these two statements?

 

statement 1

statement 2

A

B

C

D

macroeconomic statement

macroeconomic statement

microeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

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    21 mark

    A country experiences a long strike by railway workers.

    What would be the macroeconomic impact of such a strike?

    • National output would fall.

    • Railway workers would lose income.

    • The demand for taxi services would rise.

    • The profits of railway operators would fall.

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    31 mark

    Which statement best characterises the scope of macroeconomics?

    • Analysis of individual price-setting strategies

    • Study of individual consumer demand

    • Examination of overall economic indicators and trends

    • Investigation of competition between specific firms

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    41 mark

    Which of the following topics is commonly studied in macroeconomics?

    • Market supply and demand for specific goods

    • Individual firms' growth strategies

    • National income, unemployment, and inflation

    • Consumer choices and preferences

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    51 mark

    One of the primary goals of macroeconomics is to:

    • Analyse consumer preferences and demand for goods

    • Study the competitive strategies of individual firms

    • Understand and explain overall economic trends and fluctuations

    • Examine the allocation of resources in specific industries

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    11 mark

    A country experiences a decrease in its overall unemployment rate, leading to higher consumer spending. 

    Which combination correctly describes these two statements?

     

    Statement 1

    Statement 2

    A

    B

    C

    D

    macroeconomic statement

    macroeconomic statement

    microeconomic statement

    microeconomic statement

    macroeconomic statement

    microeconomic statement

    macroeconomic statement

    microeconomic statement

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      21 mark

      A central bank adjusts interest rates to influence borrowing and spending in the economy - as a result the demand for luxury Swiss watches falls. 

      Which combination correctly describes these two statements?

       

      Statement 1

      Statement 2

      A

      B

      C

      D

      macroeconomic statement

      macroeconomic statement

      microeconomic statement

      microeconomic statement

      macroeconomic statement

      microeconomic statement

      macroeconomic statement

      microeconomic statement

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        31 mark

        An individual consumer decides to purchase fewer luxury goods due to an increase in their prices. 

        Which combination correctly describes these two statements?

         

        Statement 1

        Statement 2

        A

        B

        C

        D

        macroeconomic statement

        macroeconomic statement

        microeconomic statement

        microeconomic statement

        macroeconomic statement

        microeconomic statement

        macroeconomic statement

        microeconomic statement

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          41 mark

          Which of the following best characterises the primary focus of macroeconomics?

          • Investigating the effects of international trade on economic growth

          • Analysing the behaviour of the overall economy

          • Studying the interactions between individual consumers and firms

          • Examining the impact of government policies on unemployment

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          51 mark

          Which of the following statements is the most true?

          • A consumer is a macroeconomic decision maker

          • Competition between firms is likely to influence the average price level

          • The government is one of the key macroeconomic decision makers in an economy

          • The behaviour of firms is usually analysed from a macroeconomic point of view

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