Which of the following statements correctly highlights the difference between microeconomics and macroeconomics?
A) Microeconomics is descriptive, whereas macroeconomics is advisory.
B) Microeconomics primarily deals with positive analysis, whereas macroeconomics primarily deals with normative analysis.
C) Microeconomics deals with a small part of the economy, whereas macroeconomics deals with aggregate economic performance.
D) Microeconomics describes what economic agents actually do, whereas macroeconomics describes what economic agents ought to do.
C
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If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm making?
What will be an ideal response?
The difference between the ________ and the ________ from the sale of a product is called producer surplus
A) highest price a firm would have been willing to accept; lowest price it was willing to accept B) cost to produce a product; profit received C) lowest price a firm would have been willing to accept; price it actually receives D) cost to produce a product; price a firm actually receives
The push toward creating more regional trade agreements necessarily harms the multilateral liberalization process that is at the heart of the WTO
What will be an ideal response?
Income taxes cause _____
a. individuals to substitute towards leisure b. individuals to substitute towards jobs with more in-kind benefits c. individuals to work in underground markets d. all of the above