What is the most important factor that explains differences in living standards across the countries?
The level of productivity is the single most important determinant of a country's standard of living with faster productivity growth leading to an increasingly better standard of living.
Which of the following statements best captures the relationship between microeconomics and macro?
Which of the following statements best captures the relationship between microeconomics and macroeconomics? For the most part, microeconomists are unconcerned with macroeconomics, and macroeconomists are unconcerned with microeconomics.
Which is the most accurate statement about trade?
Answer and Explanation: The statement 'Trade can make every nation better off' is the most accurate statement…
What factors affect standard of living?
Factors that determine a standard of living include income, physical health, quality of the environment, housing availability, life expectancy, personal safety, and access to education, medical facilities, and social services.
What determines the standard of living?
The standard of living is measured by things that are easily quantified, such as income, employment opportunities, cost of goods and services, and poverty. Factors such as life expectancy, the inflation rate, or the number of paid vacation days people receive each year are also included.
What is microeconomics and macroeconomics?
Microeconomics is the study of how individuals and companies make decisions to allocate scarce resources. Macroeconomics is the study of an economy as a whole.
What is the importance of macroeconomics?
1. It helps to understand the functioning of a complicated modern economic system. It describes how the economy as a whole functions and how the level of national income and employment is determined on the basis of aggregate demand and aggregate supply.
Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?
Which of the following statements best characterizes a basic difference between market economies and centrally- planned economies? Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.
Which of the following best defines efficiency?
The term efficiency can be defined as the ability to achieve an end goal with little to no waste, effort, or energy. Being efficient means you can achieve your results by putting the resources you have in the best way possible.
What is the most important source of increase in a nation’s standard of living?
In the long run, the most important source of increase in a nation's standard of living is a: high rate of economic growth.
What causes a country to have a high standard of living?
A number of different factors contribute to a high standard of living, but some of the most important include the total profitability of the nation or region as a whole, the employment opportunities and income available to residents, and the ease of access to affordable goods and services.
What is more important for explaining the standard of living in the rich countries capital or ideas?
What is more important for explaining the standard of living in the rich countries: capital or ideas? Better ideas. How are ideas like flames? You can spread the idea to another person without losing the idea yourself.
What are the 4 factors that make up the standard of living?
Understanding Standard of Living Standard of living focuses on basic material factors such as income, gross domestic product (GDP), life expectancy, and economic opportunity.
What does business cycle and recession mean?
The alternating phases of the business cycle are expansions and contractions (also called recessions). Recessions often start at the peak of the business cycle—when an expansion ends—and end at the trough of the business cycle, when the next expansion begins.
Who are the principal economic agents involved in the circular flow of economic activity?
The all pervasive economic problem is that of scarcity which is solved by three institutions (or decision-making agents) of an economy. They are households (or individuals), firms and government. They are actively engaged in three economic activities of production, consumption and exchange of goods and services.
What is the importance of micro and macro economics?
Microeconomics is important as it focuses on the smaller or individual aspects of the economy like workers, households and businesses. Macroeconomics, on the other hand, is important as it studies the economy as a whole. It looks after the major aspects of the economy such as GDP, unemployment rates, and inflation.
What is difference between microeconomics and macroeconomics?
Microeconomics is the study of economics at an individual, group, or company level. Whereas, macroeconomics is the study of a national economy as a whole. Microeconomics focuses on issues that affect individuals and companies. Macroeconomics focuses on issues that affect nations and the world economy.
Is inflation the primary determinant of a country’s living standards?
Inflation is the primary determinant of a country's living standards. Inflation increases the value of money. In the long run the primary effect of increasing the quantity of money is higher prices. The business cycle refers to fluctuations in economic activity such as a employment and production.
What is the importance of economics in our daily life?
Economics affects our daily lives in both obvious and subtle ways. From an individual perspective, economics frames many choices we have to make about work, leisure, consumption and how much to save. Our lives are also influenced by macro-economic trends, such as inflation, interest rates and economic growth.
Which of the following circumstances is most likely to reduce one’s standard of living?
Which of the following circumstances is most likely to reduce one's standard of living? An increase in the cost of some goods such as escalating gasoline prices.
Why is economic efficiency important?
Benefits of economic efficiency Working towards efficiency lowers the cost of production, which can then reduce the cost of goods and services for consumers. When an economy is efficient, a business can maintain the quality of its products while decreasing the amount they spend to make them.
What raises the standard of living?
The growth rate of GDP per hour worked (a measure of labor productivity) The growth rate of the number of hours per capita (a measure of the extent of labor utilization)
What is the most important source of rising living standards over time?
The level of productivity is the single most important determinant of a country's standard of living, with faster productivity growth leading to an increasingly better standard of living.
What causes differences in living standards?
The fundamental reason for the differences in the levels of living between different countries is the difference in their levels of national income. The level of national income depends upon the total volume of production in the country.
What determines a country’s standard of living?
The standard of living is measured by things that are easily quantified, such as income, employment opportunities, cost of goods and services, and poverty. Factors such as life expectancy, the inflation rate, or the number of paid vacation days people receive each year are also included.
What is trade cycle explain the phases of trade cycle and anti cyclical measures?
ADVERTISEMENTS: The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression! The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression.
What is meant by managerial economics explain the nature and scope of managerial economics?
Managerial economics is a stream of management studies that emphasizes primarily solving business problems and decision-making by applying the theories and principles of microeconomics and macroeconomics. It is a specialized stream dealing with an organization's internal issues using various economic theories.
What interactions does the circular flow model of economic activity show between consumers and producers?
The circular flow model shows the interaction between two groups of economic decision-makers—households and businesses—and two types of economic markets—the market for resources and the market for goods and services.
Why is production and consumption important in discussing the particular flow of economic activity essay?
Production leads to consumption and consumption necessitates production. In other words, production is a means (beginning) and consumption is the end of all economic activities. Both production and consumption, in turn, depend upon exchange. Thus these two flows are interrelated and interdependent through exchange.
What is the main difference between macroeconomics and microeconomics?
Microeconomics is the study of economics at an individual, group, or company level. Whereas, macroeconomics is the study of a national economy as a whole. Microeconomics focuses on issues that affect individuals and companies. Macroeconomics focuses on issues that affect nations and the world economy.