The Basic Difference Between Macroeconomics and Microeconomics Is That

question 221

Multiple Choice

The basic difference between macroeconomics and microeconomics is that:

• A)microeconomics looks at the forest (aggregate markets) while macroeconomics is concerned with the trees (individual markets).
• B)macroeconomics is concerned with policy decisions while microeconomics applies only to theory.
• C)microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets).
• D)macroeconomics is concerned with positive economics while microeconomics is concerned with normative economics.

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Definitions:

F Statistic

A ratio used in ANOVA and regression analysis to determine if the variances between means are statistically significant.

Main Effect

The direct influence of an independent variable on a dependent variable in an experimental design.

Two-Way ANOVA

An extension of the ANOVA that assesses the effect of two different categorical independent variables on one continuous dependent variable.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, typically in the context of parameters estimated from sample data.