The distinction between microeconomics and macroeconomics is
A) clearly drawn, and there is no overlap between them.
B) determined by economists in a clear and concise manner.
C) narrowly drawn, and microeconomic analysis often relies on macroeconomic tools.
D) often blurred because aggregates are made up of individuals and firms.
Answer: D
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Generally, microeconomics
A) has little to say about the entrepreneur B) says a good bit about the entrepreneur. C) equates the entrepreneur and the manager. D) equates management and shareholders.
The Malthusian theory said that population tended to grow in a _____ progression, while the food supply grew in an _____ progression.
Fill in the blank(s) with the appropriate word(s).
An increase in the demand for corn is more than offset by an increase in its supply. As a result the equilibrium price will:
A. Increase and the equilibrium quantity will decrease B. Increase and the equilibrium quantity will increase C. Decrease and the equilibrium quantity will decrease D. Decrease and the equilibrium quantity will increase
The local lemon market has the following supply and demand relationships:
QD = 100 - 5p - po + 2I QS = 4p where p is the price of lemons (per pound), Q is the quantity of lemons in pounds, I is the average consumer income, and po is the price per pound of oranges. Derive the equilibrium price and quantity of lemons as functions of the price of oranges and average consumer income. Use the calculus method of comparative statics to compute the effects of income and the price of oranges on the equilibrium price and quantity of lemons.