Which of the Following Is an Example of a Microeconomic

question 153

Multiple Choice

Which of the following is an example of a microeconomic decision?

• A) A multinational company deciding where to relocate its world headquarters
• B) An individual deciding how to allocate the time he or she has for work and leisure
• C) A small shoe factory deciding how much leather to purchase for the next quarter's production need
• D) All of the above answers are correct.

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Definitions:

Present Value

The immediate value of a prospective sum of money or stream of cash flows, using a specific interest rate for calculation.

Equivalent

A term expressing a state of equality or equivalency in value, function, or meaning.

Cash Held

Physical money held by a business in its cash registers or cash box, used for daily operations.

Present Value

The present-day valuation of coming monetary sums or cash flow sequences, upon applying a defined rate of return.