Which of the Following BEST Describes Macroeconomics

question 295

Multiple Choice

Which of the following BEST describes macroeconomics?

• A) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments.
• B) It studies the choices that individuals and businesses make when coping with scarcity.
• C) It examines how the choices that individuals affect governments.
• D) It is not a social science because its predictions cannot be tested.
• E) Proving causation is never a problem for macroeconomics.

---

Definitions:

Output Level

The total amount of goods or services produced by a business or economy within a specific period.

Economic Loss

A situation where total cost exceeds total revenue, resulting in a negative profit for a business.

Average Variable Cost

The total variable costs divided by the quantity of output, indicating the variable cost per unit of output.

Marginal Cost

The hike in production costs when an additional unit of a good or service is manufactured.