We Would Expect a Macroeconomist, as Opposed to a Microeconomist

question 423

Multiple Choice

We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in

• A)explaining how economic changes affect prices of particular goods.
• B)devising policies to deal with market failures such as externalities and market power.
• C)devising policies to promote low inflation.
• D)identifying those markets that are competitive and those that are not competitive.

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Definitions:

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Invested Assets

Resources such as securities and properties that an individual or organization allocates money into with the expectation of generating income or profit.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Return on Investment

A financial ratio that calculates the percentage gain or loss on an investment relative to the cost of the investment, indicating the efficiency of the investment.