Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would you correct the student's answer? "Microeconomics is the study of how government influences the choices made by individuals and bus
and of the performance of the whole national economy."
The answer is partially correct. Microeconomics is the study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of the government. But the performance of the national economy is the subject of macroeconomics, not microeconomics.
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Under a flexible exchange rate, an increase in the domestic money supply leads to
A) a devaluation of the domestic currency. B) a revaluation of the domestic currency. C) a depreciation of the domestic currency. D) an appreciation of the domestic currency.
National income (NI) is calculated by adjusting GDP for: a. depreciation
b. investment and net exports. c. Social Security insurance contributions and transfer payments. d. corporate and personal income taxes.