Microeconomics studies
A) decisions made by individual consumers and firms.
B) the changes in economic theory brought about by real-world events.
C) how small changes in the unemployment rate can have far-reaching effects.
D) how small changes in the money supply can have far-reaching effects.
A
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Because of scarcity, every economic decision involves
A. a trade-off. B. a free good. C. a trade-in. D. an increasing cost. E. a money payment.
When you bought your textbook for this course, you were using money as a
A) store of value. B) price mechanism. C) medium of exchange. D) unit of account.
The theory of countervailing power asserts that
a. government must counter the power of big business b. the government must nationalize all important industries c. market power in one sector will be held in check by market power in another sector d. big firms will all join together to raise prices and profits e. small firms are a sufficient countervailing force to neutralize the harmful effects of big business
After an extended period of steady inflation at a constant rate,
a. people will anticipate inflation. b. actual unemployment will approximate the natural rate of unemployment. c. actual unemployment will be less than the natural rate of unemployment. d. both a and b are true.