Which of the Following Questions Is a Topic That Would

question 209

Multiple Choice

Which of the following questions is a topic that would be studied by microeconomics?

• A) How will a lower price of digital cameras affect the quantity of cameras sold?
• B) What is the current unemployment rate in the United States?
• C) Why did production and the number of jobs shrink in 2009?
• D) Will the current budget deficit affect the well-being of the next generation?

---

Definitions:

Bundle

A combination or collection of goods or services that is considered as a single unit by consumers or businesses.

Cobb-Douglas Utility

A specific form of utility function used in economics to represent preferences of consumers, characterized by a functional form that is a particular type of product of goods' amounts raised to various powers.

Compensating Variation

An economic concept referring to the amount of money one would need to attain the same level of utility after a price change.

Equivalent Variation

A measure in economics that calculates the change in wealth needed to reach utility before a price change, preserving consumer satisfaction levels.