Which of the Following Topics Are More Likely to Be

question 26

Multiple Choice

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

• A) the effect of taxes on the prices of airline tickets,the profitability of automobile-manufacturing firms,and employment trends in the food-service industry
• B) the price of beef,wage differences between genders,and antitrust laws
• C) how consumers maximize utility,and how prices are established in markets for agricultural products
• D) the percentage of the labor force that is out of work,and differences in average income from country to country

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Definitions:

Herfindahl Index

A measure of the size of companies in relation to the industry and an indicator of the amount of competition among them.

Market Shares

The proportion of total sales or revenue in a market accounted for by a particular company, indicating its dominance in the market.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing the excess that remains after all costs have been accounted for.

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for competition based on factors other than price, such as quality and branding.