1.Explain the difference between the study of microeconomics and the study of macroeconomics. 2.Why is the study of macroeconomics important to the entrepreneur or business owner?

3.Explain the difference between Real GDP and Nominal GDP.

4.Assume in the below figure that an economy has increased its output from point 'A' to point 'B'.What did this economy have to give up in order to increase this output? Is it worth it? 5.Using the circular flow model on pg. 373, explain how Y=C+I+G+NX.6.Explain how the 'income approach' is used to measure GDP. .7.Explain the difference between an intermediate good and a final good as it pertains to inclusion or exclusion in GDP. 8.At various locations Toyota has 2 different lots with cars for sale. One lot has only new cars (manufactured in the present year) while the second lot has only used cars (some of which were manufactured in the present year). How would these cars be or not be recognized as part ofGDP for the present year? Explain. 9.Read "Eye on the Global Economy" on pg. 389. Notice that the US is near the top in terms of income per person. Why is it not at the top? What might have pushed it below the top? 10.McDonald's fast food restaurants have spread throughout the world. How should its income from restaurants in other countries be counteda)in the US's GDPb) in the US's GNP?

Clean environment A B 0 GDP