Macroeconomics Is Based on Microeconomics for All of the Following

question 57

Multiple Choice

Macroeconomics is based on microeconomics for all of the following reasons except:

• A) when we study the economy as a whole, we must consider the decisions of individual economic actors.
• B) aggregate variables are simply the sum of variables describing many individual decisions.
• C) macroeconomic decision makers, when they make their choices, are required to maximize utility functions.
• D) to understand the determinants of aggregate investment, we must think about a firm's deciding whether to build a new factory.

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Definitions:

Use

The act of employing something for a particular purpose or function.

Skills

The ability to do something well, often as a result of knowledge, practice, and experience.

Sphere

A perfectly round geometrical object in three-dimensional space, like a globe or ball.

Metaphor

A figure of speech in which a term is applied to something to which it is not literally applicable to suggest a resemblance.