The Basic Difference Between Macroeconomics and Microeconomics Is That

question 79

Multiple Choice

The basic difference between macroeconomics and microeconomics is that

• A) macroeconomics is concerned with the forest (aggregate markets), while microeconomics is concerned with the individual trees (subcomponents).
• B) macroeconomics is concerned with policy decisions, while microeconomics applies only to theory.
• C) microeconomics is concerned with the forest (aggregate markets), while macroeconomics is concerned with the trees (subcomponents).
• D) opportunity cost is applicable to macroeconomics, and the fallacy of composition relates to microeconomics.

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Definitions:

Revenue Derived

Income generated from normal business operations or other specific sources.

Tax Rate

The per-unit amount of the tax or the percentage rate at which the economic activity is taxed.

Tax Burden

The aggregate sum of taxes that individuals or businesses remit, correlated to their earnings or profits.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.