Which of the Following Is a Macroeconomic Topic? I

question 13

Multiple Choice

Which of the following is a macroeconomic topic? i. China increases interest rates to slow its economic growth.
Ii) Parliament lowers tax rates to try to lower the unemployment rate.
Iii) Nissan decides to produce more electric Leaf models and fewer Altima sedans.

• A) ii and iii
• B) i and iii
• C) iii only
• D) i and ii
• E) i only

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in average costs with increased production.

Minimum Efficient Scale

The smallest scale of production a firm can achieve while still taking full advantage of economies of scale in terms of costs per unit.

Output

The quantity of goods or services produced by a firm, sector, or economy within a certain period.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.