Identify whether each of the following topics would be primarily a concern of microeconomics or macroeconomics:
a. The decision by a household to eat in rather than go out for dinner this evening.
b. The unemployment rate increased from 4.5% to 4.8%.
c. A decision by the Federal Reserve Bank to decrease the supply of money in the economy.
d. The general level of prices increased by 5% last year.
e. The price of bicycles increased by $30 last year.
f. The family restaurant chain closed down after losing much of its customer base to fast-food competitors over the last few years.
Microeconomic topics: a, e, and f
Macroeconomic topics: b, c, and d
You might also like to view...
Which of the following is not a composite currency?
A) The SDR B) The ECU C) The U.S. dollar D) All of the above
Which of the following best describes what has happened to the U.S. labor supply and labor demand over the past 50 years?
a. Labor supply increased and labor demand decreased. b. Both labor supply and labor demand decreased. c. Labor supply did not change but labor demand increased. d. Both labor supply and labor demand increased. e. Labor supply increased but labor demand did not change.
Predatory pricing occurs when
a. firms collude to set prices. Economists are certain this practice is profitable. b. firms collude to set prices. Economists are skeptical that this practice is profitable. c. A monopolist decreases its prices to maintain its monopoly. Economists are certain this practice is profitable. d. A monopolist decreases its prices to maintain its monopoly. Economists are skeptical that this practice is profitable.
Over the long run, the U.S. economy:
a. has grown dramatically. b. has shown nominal growth. c. has remained more or less stagnant. d. has not produced enough capital goods.