Question

Microeconomics and macroeconomics Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics The effects of government tax policy on long-term economic growth A consumer's optimal choice when buying a flat-screen TV A firm's decision about the size of its new factory

Answer 1

Answer:

Micro Economics - 2 & 3 ; Macro Economics - 1

Explanation:

Micro Economics studies the behaviour of individual consumers, firms & industries. Eg : A good's demand.

Macro Economics studies the Economy as a whole. Eg : Aggregate Demand

2 & 3 : A consumer's optimal choice when buying a flat-screen TV , A firm's decision about the size of its new factory - are about a single consumer , a single firm. They are hence Micro Economics topics.

1 : The effects of government tax policy on long-term economic growth - is impact of macro economics topic 'budget' on entire economy's growth. They are hence Macro Economics topics.