Which Question Is an Example of a Microeconomic Question

question 18

Multiple Choice

Which question is an example of a microeconomic question?

• A) What should the Federal government do to reduce the trade deficit with Japan?
• B) Will the merger of two airlines likely lead to higher cost of air travel in the economy?
• C) What factors are contributing to the steep rise in the federal government's total debt?
• D) Will the inflation rate remain relatively stable this year?

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Definitions:

Negotiability

The quality of a financial instrument that allows it to be transferred or assigned from one party to another in exchange for value.

Sum Certain In Money

A specified, fixed, or exact amount of money that is owed or due to be paid under a contract or agreement.

Enforceable Contract

a valid agreement between parties that can be legally upheld and compelled in a court of law.

Payment

The transfer of money or goods from one party to another as a fulfillment of a transaction or obligation.