An Example of a Microeconomic Decision Is a Situation in Which

question 281

Multiple Choice

An example of a microeconomic decision is a situation in which

• A) the Federal Reserve considers how much to increase the money supply during the coming month in an effort to constrain the rate of inflation.
• B) Congress and the president seek to reach a compromise on how much to increase government spending in an effort to influence national expenditures.
• C) a firm evaluates how much to reduce the price of its product in an effort to influence sales and boost its profits.
• D) the U.S. Treasury contemplates buying foreign currencies in an effort to influence exchange rates with an aim to boosting demand for U.S. goods and services.

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Definitions:

Door-to-Door Sales

The direct selling of goods or services to consumers at their homes or places of residence.

Abuses

The improper use or treatment of someone or something, often to unfairly or improperly gain benefit.

Cooling-Off Period

A statutorily defined period during which purchasers in door-to-door sales may change their minds and rescind a contract.

Bill of Exchange

A written order used in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.