Which of the Following Is a Topic Studied in Macroeconomics

question 287

Multiple Choice

Which of the following is a topic studied in macroeconomics?

• A) The pricing decisions in the computer hardware industry
• B) The effect on economic growth if the government raises taxes
• C) How the wheat industry determines how much wheat to grow
• D) The impact of labor unions on wages
• E) The impact of higher prices for gasoline on the number of SUVs people buy

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Definitions:

Risk-free Asset

An investment with a certain rate of return, typically considered to be government bonds or similar vehicles with no risk of financial loss.

Total Risk

The overall uncertainty associated with an investment decision, encompassing both systematic and unsystematic risk.

CAPM

Capital Asset Pricing Model; a formula used to determine the expected return on an investment, factoring in its risk relative to the market.