Which of the Following Is a Microeconomic Topic

question 5

Multiple Choice

Which of the following is a microeconomic topic?

• A) the reasons why Kathy buys less orange juice
• B) the reasons for a decline in average prices
• C) the reasons why total employment decreases
• D) the effect of the government budget deficit on inflation

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Definitions:

Income Distribution

The way in which total income is shared among the members of an economy.

Insolvent

A financial state where an individual or organization cannot meet its debt obligations as they come due.

Liabilities

Financial obligations or debts that a company owes to outside parties, which are recorded on the right-hand side of the balance sheet.

Creditors

Individuals, organizations, or entities that have lent money or extended credit to another party, and thus are owed repayment of the principal amount plus any applicable interest or charges.