Macro v Micro

The basic economic problem is

• how to allocate scarce resources to satisfy unlimited needs and wants.

• how to satisfy limited wants and needs with unlimited resources.

• meeting increased demand for goods and services with limited resources.

• the interaction of market forces to satisfy unlimited needs and wants.

What does microeconomics study?

• The economy as a whole

• Particular markets and sections of the economy

• International trade

• Government policies

Which of the following is NOT a topic covered in microeconomics?

• Factors of production

• Demand

• International trade policies

• Market structure

Microeconomics is concerned with the economic factors that affect choices and the effects of changes in these factors on whom?

• Government officials

• Decision makers

• International organizations

• Environmentalists

Microeconomics tends to use what to explain changes in individual markets and industries?

• Empirical evidence

• Historical data

• Theory

• Government policies

Which of the following is NOT a topic covered in macroeconomics?

• The role of government

• Redistribution of income

• Consumer preferences

• Inflation and deflation

Which of the following is a focus area of microeconomics?

• Whole economy (GDP)

• Inflation (general price level)

• Individual markets

• Aggregate demand (AD)

How can internal and external economies of scale affect a firm?

• By influencing the firm's scale of operations

• By determining the national interest rates

• By regulating international trade policies

• By setting public infrastructure budgets