Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would you correct the student's answer? "Microeconomics is the study of how government influences the choices made by individuals and bus
and of the performance of the whole national economy."
The answer is partially correct. Microeconomics is the study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of the government. But the performance of the national economy is the subject of macroeconomics, not microeconomics.
You might also like to view...
Why is knowledge considered a type of capital?
What will be an ideal response?
If the Fed wanted to use all of its policy variables to decrease the supply of money, which of following would that include? a. Increasing its open market sales of government securities. b. Increasing the required reserve ratio
c. Decreasing the interest rate it pays banks on bank reserves. d. It would include all of the above.
What is it called when a third party of empowered to resolve a disagreement it is called?
a. negotiation b. grievance c. arbitration d. mediation
Which of the following moral theories considers the action resulting in the greatest benefit to all people as the most moral action?
a. act utilitarianism b. rule utilitarianism c. relativism d. deontology