Label each entry in the list as dealing with a microeconomic topic or a macroeconomic topic. Explain your answer
What will be an ideal response?
Motor vehicles production in China is growing by 10 percent a year.
This entry is a microeconomic topic because individuals and businesses make decisions whether to buy or sell cars.
• Coffee prices rocket.
This entry is a microeconomic topic because individuals and businesses make decisions whether to buy or sell coffee.
• Globalization has reduced African poverty.
This entry is a macroeconomic topic because globalization is the result of choices made by billions of people rather than an individual or business.
• The government must cut its budget deficit.
This entry is a macroeconomic topic because neither an individual nor a business makes decision to cut expenditures.
• Apple sells 3 million iPhones a month.
This entry is a microeconomic topic because individuals and Apple make decision whether to buy or sell iPhones.
You might also like to view...
If a union can successfully shift the demand curve for union labor rightward, the union can achieve
A) an increase in wages and employment. B) an increase in wages but a decrease in employment. C) an increase in employment but a decrease in wages. D) a decrease in both employment and wages.
The productivity slowdown experience in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries
Indicate whether the statement is true or false
The measure of GDP which effectively updates the prices for the base year each year and reduces the errors from changes in relative prices and the introduction of new goods and services is called the
A) nominal GDP. B) real GDP. C) deflated GDP. D) chain-weighted GDP.
In imperfectly competitive industries, producers' agreements to restrict output tend to be unstable because each firm has an incentive to:
A. establish competitive price and output levels. B. lower both its price and its output. C. produce more than its output quota. D. raise prices above the cooperative price.