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IGCSEEconomicsCambridge (CIE)Exam Questions2. The Allocation of Resources2.1 Microeconomics & Macroeconomics

Microeconomics & Macroeconomics (Cambridge (CIE) IGCSE Economics): Exam Questions

Exam code: 0455 & 0987

57 mins26 questions

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2.1 Microeconomics & Macroeconomics

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11 mark

Which person makes macroeconomic decisions?

  • a bank manager

  • a government finance minister

  • a shareholder in a firm

  • a worker

Choose your answer

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

Choose your answer

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

Choose your answer

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

Choose your answer

51 mark

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

  • Microeconomics

  • Macroeconomics

  • International economics

  • Environmental economics

Choose your answer

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

    Choose your answer

    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.

    Choose your answer

    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

    Choose your answer

    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

    Choose your answer

    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

    Choose your answer

    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

      Choose your answer

      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

        Choose your answer

        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

          Choose your answer

          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

          Choose your answer

          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

          Choose your answer