In Broad Terms the Difference Between Microeconomics and Macroeconomics Is

question 175

Multiple Choice

In broad terms the difference between microeconomics and macroeconomics is that

• A) they use different sets of tools and ideas.
• B) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.
• C) macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not.
• D) microeconomics studies the effects of government taxes on the national unemployment rate.

---

Definitions:

Rate of Return

Outcomes in terms of profit or loss on an investment during a defined period, voiced as a percentage of the investment’s initial pricing.

Investor's Return

The upward or downward financial impact on an investment within a specific period, quantified as a percentage of the investment’s outset cost.

Expected to Be

A phrase indicating the anticipation or belief that something will occur or be the case in the future.

Market Rate of Return

The average rate of return expected by investors in a particular market, based on historical or anticipated investment performance.