In Part, Microeconomics Is Concerned with

question 455

Multiple Choice

In part, microeconomics is concerned with

• A) how a business firm decides upon the amount it produces and the price it sets.
• B) changes in the economy's total output of goods and services over long periods of time.
• C) factors that explain changes in the unemployment rate over time.
• D) the Federal Reserve's policy decisions.

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Definitions:

Firms

Business organizations, such as corporations, partnerships, or sole proprietorships, that are engaged in commercial, industrial, or professional activities.

Market

A platform or area where buyers and sellers come together to exchange goods, services, or information.

Firm Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.

Economy

The system of production, distribution, and consumption of goods and services within a geographical region.