Which Topic Is Studied in Macroeconomics

question 70

Multiple Choice

Which topic is studied in macroeconomics?

• A)the change in automobile sales due to a change in the price of automobiles
• B)the effect of a tax reduction on the profits of an individual business
• C)recessions
• D)the unemployment of workers displaced by technological change in the typesetting industry

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Definitions:

Variable Costs

Variable Costs are expenses that vary directly with the level of production or business activity.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Break-even Point

The financial point at which total costs equal total revenue, meaning that the business is neither making a profit nor a loss.

Cost-volume-profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.