Economics True/False

True. Explanation: Microeconomics and Macroeconomics are not independent of each other and there is much common ground between the two. It means Microeconomics and Macroeconomics are interdependent.

False.

Explanation:

The main tools of macroeconomics are aggregate demand and aggregate supply.

False.

Explanation:

As macroeconomics is that part of economics theory which study the economy as a whole.

False. Explanation: Use of raw material helps in production process therefore it is a single use producer good. But it has no longer life.

False.

Explanation: It is not a factor income, It is paid for without receiving any goods and services.

False. Explanation: The concept applies to institutions also, in addition to individuals.

False. Explanation: Television is a durable consumption good.

False. Explanation: It is a flow concept as it is measured over a period of time.

False. Explanation: Real flow is known as physical flow. Money flow is known by the name of nominal flow.

False. Explanation: It deals with problems of the economy.

True. Explanation: Because final goods have crossed the production boundary.

True. Explanation: It happens because firms sell their entire output to the households.

False. Explanation: It is flow concept as these are assessed over a period of time and not at a point of time.

True. Explanation: Even in case of closed economy, circular flow of income takes place between households and firms.

True. Explanation: Capital formation is measured over a period of time.

True. Explanation: Purchase of a new car can be categorized as an intermediate good, if purchased by a Government for military use or if it is purchased by a car dealer for resale.

False. Explanation: Books used in a library are final goods as these are used by the end user.

True. Explanation: A good can be an intermediate goods or final goods, depending upon its nature of use. For example, a car purchased by a household is a final good, whereas, it will be an intermediate good if it is purchased by a car dealer.