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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A game show host who gave up his job as a teacher brags about his salary, saying "the rest is pure gravy." Here, "the rest" refers to
a. opportunity cost b. implicit cost c. explicit cost d. the height of his labor supply curve e. economic rent
If a monopolist can sell 7 units when the price is $4 and 8 units when the price is $3, then the marginal revenue of selling the eighth unit is equal to
a. $3. b. $4. c. $24. d. -$4.
Suppose that over the past decade, U.S. inflation is greater than that in Mexico. Further assume that during this same period, the dollar appreciates relative to the Mexican peso. Given this information,
A) the real exchange rate remains unchanged. B) the real exchange rate must decrease. C) the real exchange rate must increase. D) the real exchange rate can increase or remain the same, but not decrease. E) the real exchange rate can decrease or remain the same, but not increase.
Attempting to answer the question of how much a life is worth is a job undertaken by
A) macroeconomists. B) forensic economists. C) economic theorists. D) environmental economists.