Macroeconomics

question 68

Multiple Choice

Macroeconomics:

• A)is narrower in scope than microeconomics.
• B)analyzes mergers and acquisitions between firms.
• C)is concerned with the expansion and contraction of the overall economy.
• D)is concerned with the expansion of a small sole proprietorship into a large corporation.
• E)is primarily concerned with the decisions of individual households.

---

Definitions:

Resources

Assets, materials, or other inputs necessary for an organization to produce goods or services and operate effectively.

Expenses

Outflow of money to another person or company to pay for an item or service, or for a category within the income statement.

Costs

The total amount of money required for the production of goods or services, including materials, labor, and overhead expenses.

Prime Costs

The direct costs of manufacturing, including direct labor and materials.