Macroeconomists Think That

question 196

Multiple Choice

Macroeconomists think that

• A)most questions about individual markets are more important than the overall economy.
• B)questions of overall unemployment are less important than the jobs of particular workers.
• C)the details of resource allocation and individual market prices are less important than the amount of national output.
• D)the causes of unemployment usually lie with the personalities of individual workers.
• E)the price of particular products is more important than the overall price level.

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Definitions:

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the amount of sales that can decline before a business incurs a loss.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activity, such as rent and salaries.

Absorption Costing

A financial accounting technique that integrates all costs incurred from manufacturing, including direct materials, direct labor, along with both fixed and variable overhead costs, into the total cost of a product.

Direct Materials

Raw materials that can be directly linked to the production of finished goods in manufacturing.