The study of microeconomics and macroeconomics differ in that:
A. microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy.
B. microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy.
C. microeconomics studies the actions of households and macroeconomics studies the actions of business firms.
D. microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.
Answer: B
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Franco Modigliani has found that an expansionary monetary policy can cause stock market prices to ________ and consumption to ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
When network externalities are present:
A. a person's demand cannot be affected by the number of other people who have purchased the good. B. we can obtain the market demand curve simply by summing individuals' demands. C. one person's demand also depends on the demands of other people. D. the social cost of production is larger than the private cost
If crude oil is a variable factor of production for a firm, then an increase in the price of crude oil will lead to:
A. a decrease in the firm's supply. B. a decrease in the quantity supplied by the firm, but no change in the firm's supply. C. an increase in the quantity supplied by the firm, but no change in the firm's supply. D. an increase in the firm's supply.
List and briefly describe the five factors of production.
What will be an ideal response?