Question

Which of the questions is not in the area of microeconomic study? O What determines the number of hours an individual works? O Does hosting the Olympics decrease the unemployment rate? O Does a family's use of health care change when they are insured? O What causes a single business owner to hire a worker?

Answer 1

Solution:

Correct option: (B) Does hosting the Olympics decrease the unemployment rate?

Study of Microeconomics involves study of individual aspects, like the choices individual makes, and it's influence over a bigger sphere such as market. These small aspects join together, to study an economy at a vast scale, the functioning of economy, which constitutes the study of Macroeconomics.

Among the options we are provided with, the first question deals with an individual's choice of work hours and allocating remaining time to other activities of leisure. The third question again deals with the choice and behavior of a family's spending on health care, and lastly the fourth question deals the market study of labor demand. These all are, thus, clearly questions for study of Microeconomics. Only the second question covers a lot bigger picture, of how a global event can change an important factor driving the whole economy, i.e., unemployment rate. Thus, it deals not with microeconomics, but macroeconomics study.