Chapter 1- The Global Macroeconomy 1. International macroeconomics studies: A) decisions of individual households in other countries. B) decisions by governments in other countries. C) the interrelationship of large-scale economic issues across countries. D) the interrelationship of politics and economics within a country. 2. International macroeconomics focuses on: A) isolated nations. B) economy-wide variables such as interest rates, income, prices, and wealth. C) city-level economic problems. D) market-specific variables such as the price of orange juice. 3. Key elements of the international macroeconomy are: A) political alliances, capital accumulation, and monopoly power. B) many currencies, financial integration, and economic policy choices made in context. C) competition, efficiency, and openness. D) waste and overuse of natural resources, disregard for the environment, and unfair competition. 4. It is _________ to assume that all goods are priced in a common currency in international markets. A) correct in every case B) dangerous C) incorrect in every case D) unrealistic 5. Understanding how a nation's economy wor