Homework Sourse5 Microeconomics and macroeconomics Determine whether each o
5. Microeconomics and macroeconomics
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.
Microeconomics
Macroeconomics
| Microeconomics | Macroeconomics | ||
|---|---|---|---|
| The effect of an increase in consumer income on demand for smart phones | |||
| The effects of government tax policy on long-term economic growth | |||
| A consumer\'s optimal choice when buying a flat-screen TV |
Solution
Microeconomics and macroeconomics
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.
Microeconomics
Macroeconomics
The effect of an increase in consumer income on demand for smart phones
?
The effects of government tax policy on long-term economic growth
?
A consumer\'s optimal choice when buying a flat-screen TV
?
Microeconomics is the study of how households and firms make decisions and how they interact in specific markets. Microeconomics is the study of how prices and quantities are determined through interactions between buyers and sellers (individuals and firms) in individual markets.
Macroeconomics is the study of economy-wide phenomena. Macroeconomics is the study of factors that affect the entire economy.
| Microeconomics | Macroeconomics | |
| The effect of an increase in consumer income on demand for smart phones | ? | |
| The effects of government tax policy on long-term economic growth | ? | |
| A consumer\'s optimal choice when buying a flat-screen TV | ? |
