Identify for each topic whether it would be studied by a macroeconomist or a microeconomist: a. The worldwide operations of General Motors. A macroeconomist A microeconomist Both a microeconomist and macroeconomist Neither a microeconomist nor a macroeconomist b. The effect of government subsidies on sugar prices. A macroeconomist A microeconomist

Respuesta :

Answer:

a. A

b. B

Explanation:

The study of microeconomies comprise of the decision making behavior of individual firm or household regarding the scarce resources in the economy. It deals or engage with the individual units of the economy.

And the study of macroeconomics, is the one that studies the economy as a whole. It deal with the total data and their structure, behavior and performance as a whole unit.

So, in the following cases,

a. General motors world wide operations - It is the macroeconomics study as dealt with the whole economy.

b. Effect of government subsidies on sugar prices - It is the microeconomics study as dealt with the individual unit of the economy which is on the sugar prices, not economy as whole.

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