Which of the following topics is most likely to be addressed by macroeconomics instead of microeconomics?

1. A firm must determine how much to produce to maximize profits.
2. A worker decides whether to work overtime at her job.
3. A firm evaluates the effects of downsizing its operations.
4. A policymaker measures the tradeoff between inflation and unemployment.
5. A consumer decides how to allocate their budget on goods and services.

In the circular flow diagram like the one below, households sell ____________ to firms in exchange for wages, salaries, and benefits.

Figure 1.10

1. labor services
2. goods and services
3. payment for goods and services
4. division of labor
5. bonds

An economic system characterized by concentrated power over the production of goods and services is known as (a) ____________.

1. market economy
2. specialization
3. division of labor
4. globalization
5. command economy