The basic difference between macroeconomics and microeconomics is:
a. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
b. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms.
c. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
c
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Shoe leather costs include the ________ due to the more frequent trips to the bank, the new cash management systems and the expanded employment in banks that inflation causes.
A. deflating and indexing that are necessary B. redistribution that occur C. time and effort that are used up D. substitution and price adjustment biases that arise
If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a
A) store of value. B) medium of exchange. C) mechanism for transforming present purchases into future purchases. D) unit of account.
The federal budget
A) is required to balance by law. B) can have a surplus but not a deficit. C) can have a deficit but not a surplus. D) can have a deficit or a surplus but cannot be balanced. E) can have a deficit, a surplus, or a balance.
The potential for asymmetric information to bring about a general decline in product quality in an industry is known as the ________ problem
A) moral hazard B) liability C) capture D) lemons