Distinguish between macroeconomics and microeconomics
What will be an ideal response?
Macroeconomics is concerned with the behavior of the economy as a whole, while microeconomics is concerned with the choices of individual decision-makers, such as households and firms. Macroeconomics deals with aggregates, such as the total output of the economy or unemployment, while microeconomics deals with how many hours a person chooses to work or how many people a firm decides to hire.
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In peak-load pricing, the capacity decision is determined by setting ________ marginal revenue equal to long-run ________ cost.
A) off-peak; average fixed B) peak; marginal C) peak; average fixed D) off-peak; marginal
Which of the following is a flow variable?
a. Price level b. U.S. population c. Money supply d. Investment spending e. Household debt
The consumption function shows the relationship between consumer expenditures and:
a. the interest rate. b. the tax rate. c. savings. d. disposable income.
When a firm is operating at an efficient scale,
a. average variable cost is minimized. b. average fixed cost is minimized. c. average total cost is minimized. d. marginal cost is minimized.