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Principles of Macroeconomics Questions
100 word answers, 8 questions
1. How are inflation and unemployment related in the short run?
2. How is economics a science?
3. Explain how absolute advantage and comparative advantage differ.
4. What is a competitive market? Briefly describe a type of market that is not perfectly competitive.
5. Define the price elasticity of demand and the income elasticity of demand.
6. Explain why economists usually oppose controls on prices.
7. Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related.
8. When does a country become an exporter of a good? An importer?
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