Which issue is primarily a microeconomic question rather than a macroeconomic question?
Correct answer: C. The pricing decision of a wheat producer
- A. The national inflation rate
- B. The country's overall unemployment rate
- C. The pricing decision of a wheat producer
- D. The long term growth of national income
Explanation
Microeconomics studies individual consumers, firms and particular markets. Inflation, national unemployment and economic growth concern the economy as a whole and are macroeconomic issues.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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