How does microeconomics differ from macroeconomics?
What will be an ideal response?
Microeconomics is the study of how individuals, households, firms, and governments make choices, and how those choices affect prices, the allocation of resources, and the well-being of other agents. On the other hand, macroeconomics is the study of the economy as a whole. The scope of macroeconomics extends to the study of economy-wide phenomena, like the growth rate of an economy, the nation-wide unemployment rate, or the inflation rate.
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In the equation of exchange, "PQ" stands for
A) GDP. B) Real GDP. C) nominal investment. D) real investment.
If equilibrium is present in a market:
A. there is either a shortage or a surplus. B. the quantity demanded equals quantity supplied. C. the quantity demanded exceeds quantity supplied. D. the quantity supplied exceeds quantity demanded.
A straight line falls when moving rightward along it. Hence the slope of the line is
A) negative. B) positive. C) zero because it is a straight line. D) undefined. E) perhaps positive, negative, or zero, but without more information it is impossible to determine.
The price of one good produced by a multiproduct industry rises. For another good produced by that industry
a. the supply curve will shift to the left. b. the supply curve will remain constant. c. the supply curve will shift to the right. d. the demand curve will shift to the right.