Question

Which of the following topics is NOT a primary concern of macroeconomists ?
A. Unemployment
B. Relative wages of skilled and unskilled workers
C. Fluctuations in the level of economic activity
D. Differences in standards of living across countries

Answer 1

Macroeconomists have 3 primary concerns which are National output/income, unempoyment and inflation.

Here, option A = Unemployment i.e. how many people in the labour force are willing to work, but can't find jobs. Unemployment has a negative impact on the economy which leads to reduction in income, reduction in consumption, deflation, poverty, slowing down of economy etc. and is used to determine the health of the economy.

Option B = Relative wages of skilled and unskilled workers relates to the wage inequality in the economy, and not considered of much interest to the macroeconomists.

Option C = Fluctuations in the level of economic activity helps to determine national income/output. These fluctuations basically impact the level of the national income, implying to the growth or contraction of the economy. A rise in the national income implies that the economy is growing while a decrease in the national income implies that the economy is contracting.

Option D = Differences in the standard of living across countries

The differences in the standard of living between countries depends upon the level of national income and output in the country. Living standards is determined by using GDP per capita. The standard of living can indirectly imply to factors like unemployment, GDP, inflation rate etc. in the economy. So, it is an important area of concern for the macroeconomists.

So, the relative wages of skilled and unskilled workers is NOT a primary concern for macroeconomists. So, correct answer is option B.