The basic difference between macroeconomics and microeconomics is:
A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
B. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms.
C. microeconomics concentrates on the behavior of individual consumers, firms, and industries while macroeconomics focuses on the performance of the entire economy.
D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
Answer: C
You might also like to view...
Under monopolistic competition, firms have prices ________ marginal cost and long-run profits that are ________ (net of fixed costs).
A. above; positive B. above; close to zero C. below; positive D. below; close to zero
Moral hazard can be a problem in lending since lenders share __________ in the __________ risk
A) proportionately; upside B) proportionately; downside C) disproportionately; upside D) disproportionately; downside
Assume the market in the graph shown was originally at an equilibrium with demand D and supply S. Suppose Demand shifts and becomes D2. What might have caused such a shift?
A. The good became more popular.
B. People expect the price of this good to drop in the near future.
C. The good became cheaper to produce.
D. Substitutes for this good became less expensive.
Financial intermediaries increase the probability of a risky venture being funded by concentrating the risk among a few investors.
Answer the following statement true (T) or false (F)