Which of the Following Topics Are More Likely to Be

question 3

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,and the profitability of automobile-manufacturing firms
• B)the price of beef,and wage differences between genders
• 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:

Variable Component

A variable component refers to a part of a cost or expense that varies directly with the level of output or activity.

Fixed Component

A portion of total costs that remains constant, regardless of changes in the production level or sales volume.

Underapplied

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied

A situation where the estimated cost allocated to a product or job exceeds the actual costs incurred.