Label each entry in the list as dealing with a microeconomic topic or a macroeconomic topic. Explain your answer
What will be an ideal response?
Motor vehicles production in China is growing by 10 percent a year.
This entry is a microeconomic topic because individuals and businesses make decisions whether to buy or sell cars.
• Coffee prices rocket.
This entry is a microeconomic topic because individuals and businesses make decisions whether to buy or sell coffee.
• Globalization has reduced African poverty.
This entry is a macroeconomic topic because globalization is the result of choices made by billions of people rather than an individual or business.
• The government must cut its budget deficit.
This entry is a macroeconomic topic because neither an individual nor a business makes decision to cut expenditures.
• Apple sells 3 million iPhones a month.
This entry is a microeconomic topic because individuals and Apple make decision whether to buy or sell iPhones.
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In monopolistic competition in the long run, firms
A) make zero economic profit and require more capacity. B) incur an economic loss and require more capacity. C) make an economic profit and have excess capacity. D) make zero economic profit and have excess capacity. E) make an economic profit and require more capacity.
In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Brandon and Christopher can
A) gain from exchange if Brandon specializes in planting and Christopher specializes in plowing. B) gain from exchange if Brandon specializes in plowing and Christopher specializes in planting. C) exchange, but only Brandon will gain from the exchange. D) exchange, but only Christopher will gain from the exchange.