Which of the Following Is the BEST Example of the Micro-Macro

question 16

Multiple Choice

Which of the following is the BEST example of the micro-macro dilemma?

• A) Many consumers buy imported cars, even though they say they like American cars better.
• B) High performance cars are fun to drive but may be dangerous to others.
• C) Buying an imported car may cost buyers more to buy now but may have better resale value later.
• D) A fuel efficient car may cost more to buy but less to operate.
• E) The economy may be growing, but many people still are not able to buy a new car.

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Definitions:

Horizontal Diversification

A strategy used by companies to increase their product lines or enter into new markets to reduce risk and increase growth opportunities.

Unprofitable Operations

Business activities that result in a net loss rather than generating profit for the company.

Leveraged Buyout

A transaction where a company is acquired using a significant amount of borrowed money to meet the cost of acquisition.