Explain How Microeconomics Differs from Macroeconomics and Then Categorize the Following

question 29

Essay

Explain how microeconomics differs from macroeconomics and then categorize the following questions as either microeconomic or macroeconomic questions:
(a) How will interest rates change when the Federal Reserve Bank increases money supply?
(b) How will Nike's market share change when Reebok increases their marketing expenditures?
(c) How does a tariff on imported steel affect the U.S. steel industry?
(d) Should Wal-Mart renovate its stores nationwide?
(e) Should the government lower income taxes to stimulate consumption?

---

Definitions:

Taxable Qualified Dividend

Dividends that meet certain criteria set by the IRS to be taxed at the lower long-term capital gains tax rates.

Cash Receipts And Disbursements Method

An accounting method where income and expenses are recorded when they are actually received or paid.

Tax Returns

Tax Returns are official documents that taxpayers must file with the government, reporting their income, expenses, and other tax-related information.

Individuals

Persons as separate entities for legal or tax purposes, often considered for taxation, rights, and responsibilities.