Ans. Macroeconomics considers the performance of the economy as a whole. Many macroeconomic issues appear in the press and on the evening news on a daily basis. When we study macroeconomics we are looking at topics such as economic growth; inflation; changes in employment and unemployment, our trade performance with other countries (i.e. the balance of payments) the relative success or failure of government economic policies and the decisions.
..give examples of macroeconomic variables.
Ans. examples of macroeconomic variables are
a. National income
..mention any 2 differences between macroeconomics and microeconomics. Ans.
…define an economic agent ?
Or what do you mean by a player in an economy?
Ans. a person, company, or organization that has an influence on the economy by producing, buying, or selling is called an economic agent or a player in an economy. …define durable consumer goods?
Ans. Long-lived goods bought for final consumption and whose uses are expected to be enjoyed over a period longer than (usually 1 year) used in national income accounting is called consumer durable goods. Examples of durable goods are automobiles, appliances, furniture, jewelry, consumer electronics and sporting goods. ..define non-durable or single use consumer goods.
Ans. Consumer goods which are consumed in the sense that they can only be used once or very few times and is not expected to last over an accounting year is called non-durable or single use consumer goods. Example: food, drink, tobacco.
…define intermediate goods.
Ans. A good (or service) that is used as an input or component in the production of another good. Intermediate goods are combined into the production of finished products, or what are termed final goods. Intermediate goods will be further processed before sold as final goods. Examples of intermediate goods include sugar, car engines, steel and chlorine.
…whay do you mean by capital goods?
Ans A capital good (sometimes simply capital in economics) is a durable good that is used in production of goods or services. Capital goods are acquired by a society by saving wealth which can be invested in the means of production. Example cars and furnitures which can be used for both private or business purpose. …define a final good.
Ans. A good or service that is consumed by the end user and does not require any further processing.
example; tires for automobile industry or copper which can be used to make some further goods.
..define stock and flow variables.
Ans. A stock variable is measured at one specific time, and represents a quantity existing at that point in time which may have accumulated in the past. Example – money and wealth. A flow variable is measured over an interval of time. Therefore a flow would be measured per unit of time (say a year). Flow is roughly analogous to rate or speed in this sense. Example- government deficit, government wealth.
..what is the difference between stock and flow variables?
1. A stock variable is measured at one specific time, and represents a quantity existing at that point in time which may have accumulated in the past. 2. A stock variable has no time dimension.
1. A flow variable is measured over an interval of time. Therefore a flow would be measured per unit of time (say a year). Flow is roughly analogous to rate or speed in this sense. 2. A flow variable is related to time and expreessed in terms of time period.
…define the following: a. investment, b.gross investment , c. inventory investment, d. fixed investment, e. net investment. Ans. A. Investment: the process of adding to stocks of real productive assets is called investment. For example accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories. b.gross investment: gross investment is defined as the amount a...
Please join StudyMode to read the full document