Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.
1) The effect of government regulation on a monopolist's production decisions.
2) The government's decision on how much to spend on public projects.
3) The effects of the Internet on the pricing of used cars.
Answer : 1) The answer is Micro-economic theory.
Monopolist's production decision means the individual production decision. So, "the effect of government regulation on monopolist's production decision" is a study of Micro-economic theory. Because the Micro-economic theory study the individual decisions.
2) The answer is Macro-economic theory.
Public project means the project of all people of whole economy. So, the government spending decision on public projects is a study of Macro-economic theory. Because the Macro-economic theory study the whole economy.
3) The answer is Micro-economic theory.
The price of used car is individual decision. So, "the effect of internet on pricing of used cars" is a study of Micro-economic theory. Because the Micro-economic theory study the individual decisions.
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Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month. She is considering moving to a studio apartment which she will not have to share with anyone. The studio apartment rents for $950 per month
Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment. Soo Jin is as rational as any other person. As an economics student, you rightly conclude that A) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $250. B) Soo Jin did not have a choice; her roommate was a slob. C) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $950. D) the cost of having one's own space outweighs the benefits.
Mac trucks and their dealers would likely have an organizational form of
a. fixed profit sharing franchise contracts b. spot market recontracting c. alliances d. vertical integration
GDP includes the value of all
a. final goods and services produced within a country using primarily market prices to measure the value of goods and services. b. final goods and services produced within a country using primarily a survey of consumers to measure the value of goods and services. c. goods and services produced within a country using primarily market prices to measure the value of goods and services. d. goods and services produced within a country using primarily a survey of consumers to measure the value of goods and services.
Which of the following is true according to the case study on U.S. / China trade presented in the chapter?
A) China has relative abundance in capital. B) China has relative abundance in skilled labor. C) The United States has relative scarcity in unskilled labor. D) The United States has relative scarcity in capital.