The basic difference between macroeconomics and microeconomics is that
a. microeconomics is concerned with aggregate markets and the entire economy, while macroeconomics is concerned with specific individual markets.
b. macroeconomics is concerned with policy decisions, while microeconomics applies only to theory.
c. microeconomics is concerned with individual markets and the behavior of people and firms, while macroeconomics is concerned with aggregate markets and the entire economy.
d. macroeconomics is concerned with positive economics, while microeconomics is concerned with normative economics.
C
You might also like to view...
Compensating wage differentials explain some income differences
a. True b. False Indicate whether the statement is true or false
Figure 14.5 represents the market for used cars. Suppose buyers are willing to pay $5,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. Initially buyers believe that 80% of used cars in the market are lemons (low quality). Compared to the outcome with these initial expectations, how many fewer cars are sold in equilibrium?
A. 50 B. 80 C. 110 D. The number of cars sold in equilibrium is the same as the outcome with neutral expectations.