Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics....
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.
|
Microeconomics |
Macroeconomics |
||
|---|---|---|---|
| The effect of government regulation on a monopolist's production decisions | |||
| The government's decision on how much to spend on public projects | |||
| A consumer's optimal choice when buying a flat-screen TV |
Homework Answers
1) The answer is Micro-economic theory.
Monopolist's production decision means the individual production decision. So, "the effect of government regulation on monopolist's production decision" is a study of Micro-economic theory. Because the Micro-economic theory studies individual decisions.
2) The answer is Macro-economic theory.
Public project means the project of all people of the whole economy. So, the government spending decision on public projects is a study of Macro-economic theory. Because the Macro-economic theory studies the whole economy.
ANSWER :
First one : Macroeconomics
Second one : Macroeconomics
Third one : Microeconomics
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