Microeconomics approaches the study of economics from the viewpoint of:

Microeconomics approaches the study of economics from the viewpoint of:
 a. individual or specific markets. b. the national economy.
  c. government units. d. economywide markets.

QUESTION 2

Which of the following is the best example of a microeconomic topic?
 a. The impact that the money supply has on inflation.
  b. The reasons for increases in the price of soft drinks.
  c. The effect that federal budget deficits have on the interest rate.
  d. The tradeoff between inflation and unemployment.

QUESTION 3

Determining the price of compact discs is a concern of:
 a. macroeconomics.
  b. microeconomics.
  c. both macroeconomics and microeconomics.
  d. neither macroeconomics nor microeconomics.

QUESTION 4

The basic difference between macroeconomics and microeconomics is:
 a. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
  b. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms.
  c. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
  d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

QUESTION 5

Microeconomics approaches the study of economics from the viewpoint of:
 a. inflation, unemployment, and economic growth.
  b. the federal government.
  c. individual economic units, such as consumers, firms, and units of government.
  d. the economy as a whole.

QUESTION 6

Economics, according to its definition, studies how people:
 a. earn and spend money. b. invest in the stock and bond markets.
  c. make choices in the face of scarcity. d. supply goods in response to demand.