What is the difference between microeconomics and macroeconomics? Give an example of an issue each studies
What will be an ideal response?
Essentially microeconomics studies individual units within the economy, such as the choices made by individual consumers or individual firms. Macroeconomics studies the overall or aggregate economy. Microeconomics examines the factors that affect employment at an individual firm. Macroeconomics examines the factors that affect economy-wide unemployment.
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A (very, very small) country produces milk and shirts and its production possibilities frontier is in the table above. The nation is currently producing at point B
What is the opportunity cost of two additional gallons of milk? At point C? At point D? What do your results show?
A city in which 320,000 persons are employed has a labor force of 359,500 persons. The unemployment rate for the city is: a. 7.8 percent
b. 11.0 percent. c. 12.3 percent. d. 14.5 percent.
If the marginal cost of hiring another worker to produce sandwiches is $4 per sandwich, and sandwiches sell for $5 each, then:
A. another worker should be hired. B. two more workers should be hired. C. another worker should not be hired. D. Cannot answer this without more information.
Think about the following news items and label each as involving a what, how, or for whom question:
What will be an ideal response?