Find an example of the distinction between microeconomics and macroeconomics in today's headlines
What will be an ideal response?
Microeconomics: On May 6, 2014 a headline in The New York Times was "Bayer Buys Merck's Consumer Business for $14.2 Billion." This story covers a microeconomic topic because it discusses how two pharmaceutical firms have decided to transfer ownership of the unit producing over-the-counter consumer products for Merck. Macroeconomics: On May 6, 2014, a headline in The Wall Street Journal was "U.S. Trade Gap Narrows as Demand Grows Here and Abroad." This story covers a macroeconomic topic because it concerns the total amount of international trade in the entire economy.
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How does the imposition of an excise tax on a good affect its market equilibrium?
A) Equilibrium quantity decreases, and equilibrium price decreases. B) Equilibrium quantity decreases, and equilibrium price increases. C) Equilibrium quantity increases, and equilibrium price decreases. D) Equilibrium quantity increases, and equilibrium price increases
A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm's average variable cost
a. True b. False Indicate whether the statement is true or false
If a firm has been proven liable for a false ad, it has to:
A. terminate the false ad. B. compensate more than the damage it has caused. C. recall any product with the false claim on it. D. All of the statements associated with this question are correct.
Suppose that in a month the price of pizza increases from $4 to $5. At the same time, the quantity of pizzas demanded decreases from 200 to 190. The price elasticity of demand for pizza (calculated using the midpoint formula) is:
A. zero. B. inelastic. C. unit elastic. D. elastic.