Which of the Following Questions Is More Likely to Be

question 283

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 production and income increase in some periods and not in others?
• D) How rapidly is GDP currently increasing?

---

Definitions:

Capital-Intensive

A business process or industry that requires large amounts of capital investment in comparison to labor.

Average Product

The output per unit of a given input, typically labor, calculated by dividing total product by the quantity of that input.

Marginal Product

The additional output generated by adding one more unit of a particular input, holding all other inputs constant.

Profit-Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profit.