The Basic Difference Between Macroeconomics and Microeconomics Is That

question 104

Multiple Choice

The basic difference between macroeconomics and microeconomics is that

• A) microeconomics is concerned with aggregate markets and the entire economy, while macroeconomics is concerned with specific individual markets.
• B) macroeconomics is concerned with policy decisions, while microeconomics applies only to theory.
• C) microeconomics is concerned with individual markets and the behavior of people and firms, while macroeconomics is concerned with aggregate markets and the entire economy.
• D) macroeconomics is concerned with positive economics, while microeconomics is concerned with normative economics.

Identify the characteristics and outcomes of constant-cost, increasing-cost, and decreasing-cost industries in the long run.

Determine the factors that lead to changes in industry size in the long run including economic profits and losses.

Understand the significance of economic profits and normal profits in the decision-making process of firms in purely competitive markets.

Describe the relationship between market demand, economic profits/losses, and industry adjustments in the long run.

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Definitions:

Brachial

Relating to the arm, specifically the upper arm from the shoulder to the elbow.

Calibrating

The process of adjusting and setting the accuracy of a measuring instrument to ensure it meets its specified and intended use.

Balance Beam Scale

is a type of weighing scale that uses a balance beam to measure mass through a comparison of known weights.

Bladder Length

A measure of the physical dimension of the urinary bladder from base to apex.