Indicate whether each of the following is a topic of microeconomics or macroecon
ID: 1216247 • Letter: I
Question
Indicate whether each of the following is a topic of microeconomics or macroeconomics:
a. The impact of higher oil prices on the production of steel
b. The increased demand in the last 15 years for exotic dietary supplements
c. The surge in aggregate economic activity that hit much of Asia late in the early 2000s
d. The sharp increases in U.S. employment and total output that occurred between 2003 and 2007
e. The impact of preservation of wilderness areas on the logging industry and on the price of lumber
Explanation / Answer
a. The impact of higher oil prices on the production of steel: Micro
b. The increased demand in the last 15 years for exotic dietary supplements: Micro
c. The surge in aggregate economic activity that hit much of Asia late in the early 2000s: Macro
d. The sharp increases in U.S. employment and total output that occurred between 2003 and 2007: Macro
e. The impact of preservation of wilderness areas on the logging industry and on the price of lumber: Micro
Explanation:
Microeconomics studies how individuals, firms and households make decisions to allocate limited resources , typically in markets where goods or services are being bought and sold.
Macroeconomics gives us a birds’ eye view of the functioning of the whole economy specially National Income, Output, Unemployment, Inflation , Monetary and Fiscal policy.