A Microeconomist Would Study All of the Following Issues EXCEPT

question 150

Multiple Choice

A microeconomist would study all of the following issues EXCEPT

• A) the impact of a change in consumer income on the sales of corn.
• B) the impact of a snowstorm on the sales of snow shovels.
• C) the most efficient means for General Motors to produce an automobile.
• D) the effect of a change in income taxes on the nation's rate of unemployment.

---

Definitions:

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.

Money

A medium of exchange, unit of account, and store of value that facilitates transactions and measures the value of goods and services.

Worthless

Describes an item that has no value, utility, or financial gain.

Exercise Price

The specified price on an option contract at which the option holder can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.