Which of the Following Questions Is More Likely to Be

question 4

Multiple Choice

Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?

• A)Why do prices in general rise by more in some countries than in others?
• B)Why do wages differ across industries?
• C)Why do national production and income increase in some periods and not in others?
• D)How rapidly is GDP currently increasing?

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Definitions:

Comparative Advantage

Comparative advantage is an economic principle that describes the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

Opportunity cost refers to the value of the next best alternative that is foregone when choosing one option over another.

Ice Cream

A frozen dessert made from dairy products, sweeteners, and flavorings, enjoyed as a treat or snack.

Apple Pie

A traditional dessert made from apples and pastry dough, often seasoned with cinnamon, sugar, and sometimes butter, and baked until golden brown.