Which of the Following Is a Microeconomics Question

question 59

Multiple Choice

Which of the following is a microeconomics question?

• A) Is it sensible for a government to subsidize tobacco production?
• B) Why do some countries grow faster than others?
• C) Should Congress and the president take action to reduce global warming?
• D) Should the government attempt to influence the interest rate to lower inflation?

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Definitions:

External Financing Need

External financing need is the amount of funding a business requires from sources outside its operations, such as loans or investor capital, to finance its activities or growth.

Dividend Payout Ratio

A financial measurement that calculates the percentage of earnings distributed to shareholders in the form of dividends.

Predicted

Anticipated or expected based on current trends or data analysis.

Internal Growth Rate

The maximum rate at which a firm can expand its operations without obtaining additional financing, driven by reinvestment of its earnings.