IGCSEEconomicsCIETopic Questions2. The Allocation of Resources2.1 Microeconomics & Macroeconomics

Microeconomics & Macroeconomics (CIE IGCSE Economics)

Topic Questions

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11 mark

Which person makes macroeconomic decisions?

  • a bank manager

  • a government finance minister

  • a shareholder in a firm

  • a worker

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21 mark

Microeconomics focuses on the study of:

  • The overall economy and its output

  • Individual consumers and firms

  • Government policies and regulations

  • Global trade and international relations

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31 mark

Macroeconomics deals with the:

  • Detailed analysis of individual markets

  • Interactions between individual consumers and firms

  • The behaviour of the overall economy

  • Microscopic factors influencing economic decisions

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41 mark

Microeconomics analyses:

  • The overall economic growth and development of a country

  • The behaviour of industries and firms

  • The impact of fiscal and monetary policies on the economy

  • The relationships between different countries' economies

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51 mark

Which area of economics is concerned with the overall performance and behaviour of the entire economy?

  • Microeconomics

  • Macroeconomics

  • International economics

  • Environmental economics

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11 mark

A country experiences a decrease in its overall unemployment rate, leading to higher consumer spending. 

Which combination correctly describes these two statements?

  Statement 1 Statement 2

A

B

C

D

macroeconomic statement

macroeconomic statement

microeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

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21 mark

A central bank adjusts interest rates to influence borrowing and spending in the economy - as a result the demand for luxury Swiss watches falls. 

Which combination correctly describes these two statements?

  Statement 1 Statement 2

A

B

C

D

macroeconomic statement

macroeconomic statement

microeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

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31 mark

An individual consumer decides to purchase fewer luxury goods due to an increase in their prices. 

Which combination correctly describes these two statements?

  Statement 1 Statement 2

A

B

C

D

macroeconomic statement

macroeconomic statement

microeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

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41 mark

Which of the following best characterises the primary focus of macroeconomics?

  • Investigating the effects of international trade on economic growth

  • Analysing the behaviour of the overall economy

  • Studying the interactions between individual consumers and firms

  • Examining the impact of government policies on unemployment

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51 mark

Which of the following statements is the most true?

  • A consumer is a macroeconomic decision maker

  • Competition between firms is likely to influence the average price level

  • The government is one of the key macroeconomic decision makers in an economy

  • The behaviour of firms is usually analysed from a macroeconomic point of view

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11 mark

Economics is divided into two: microeconomics and macroeconomics.

statement 1 When the price of oil falls there is an expansion in demand.
statement 2 The Organization of the Petroleum Exporting Countries (OPEC) can influence the price of oil.

 

Which combination correctly describes these two statements?

  statement 1 statement 2

A

B

C

D

macroeconomic statement

macroeconomic statement

microeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

macroeconomic statement

microeconomic statement

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21 mark

A country experiences a long strike by railway workers.

What would be the macroeconomic impact of such a strike?

  • National output would fall.

  • Railway workers would lose income.

  • The demand for taxi services would rise.

  • The profits of railway operators would fall.

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31 mark

Which statement best characterises the scope of macroeconomics?

  • Analysis of individual price-setting strategies

  • Study of individual consumer demand

  • Examination of overall economic indicators and trends

  • Investigation of competition between specific firms

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41 mark

Which of the following topics is commonly studied in macroeconomics?

  • Market supply and demand for specific goods

  • Individual firms' growth strategies

  • National income, unemployment, and inflation

  • Consumer choices and preferences

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51 mark

One of the primary goals of macroeconomics is to:

  • Analyse consumer preferences and demand for goods

  • Study the competitive strategies of individual firms

  • Understand and explain overall economic trends and fluctuations

  • Examine the allocation of resources in specific industries

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