Which of the following lies primarily within the realm of microeconomics?
a. an empirical analysis of the relationship between the growth of the money supply and the rate of inflation
b. an economic model forecasting the impact of a tax increase on consumer spending and national output
c. a study of supply and demand conditions in the market for orange juice
d. a model forecasting the impact of a change in interest rates on the level of investment in the economy
c
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Answer the following statements true (T) or false (F)
1. In a mature industry, all firms operate with constant returns to scale. 2. On a cost/output graph, the average fixed cost is constructed as a straight horizontal line. 3. Marginal cost crosses the average variable cost and the average total cost at their lowest points. 4. The average fixed cost remains constant even in the long run. 5. Marginal cost is related inversely to the marginal product.
Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other
A) differences B) utility C) similarity D) elasticity
All else equal, an increase in the government's budget deficit accompanied by a decrease in corporate taxes would definitely result in
A) an increase in the equilibrium real interest rate. B) a decrease in the equilibrium real interest rate. C) an increase in the equilibrium level of saving and investment. D) a decrease in the equilibrium level of saving and investment.
If new firms enter a monopolistically competitive industry, an individual firm's demand curve will _____________ (increase/decrease).
Fill in the blank(s) with the appropriate word(s).