The study of microeconomics and macroeconomics differ in that:
a. microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy.
b. microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy.
c. microeconomics studies the actions of households and macroeconomics studies the actions of business firms.
d. microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.
Ans: b. microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy.
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A typical consumer of health care in the United States
A) does not pay the full price of his or her health care. B) does not pay any of the price of his or her health care. C) pays more than the full price of his or her health care. D) pays the full price of his or her health care.
"Good news" about an expenditure-related indicator means that
A) it is higher than its previous value. B) it is higher than it was expected to be. C) it is lower than its previous value. D) it rose faster than the rate of inflation.
For a firm in a perfectly competitive market, if it is producing at a level of output where marginal costs are equal to marginal revenue it:
A. should cut back production to increase profits. B. should increase production to increase profits. C. is producing a profit-maximizing quantity. D. is impossible to tell how quantity should be changed without more information.
The goal of the business firm is maximization of ____, and the goal of the consumer is maximization of ____
a. total sales; income b. total profit; utility c. total output; utility d. total sales; utility