Which of the Following Is an Example of the "Micro-Macro

question 124

Multiple Choice

Which of the following is an example of the "micro-macro dilemma?"

• A) A homeowner purchases a ladder but falls off it because he didn't set up the ladder according to the safety instructions posted on it.
• B) A person gets a speeding ticket because she was talking on her cell phone while driving and didn't notice a speed limit sign.
• C) A person drives without fastening his seat belt even though a warning light and chime remind him to "buckle up."
• D) A person is injured while using a power lawn mower because of a small stone that is hurled from the discharge chute.
• E) A restaurant owner uses plastic containers to keep "take-out" food warm for customers, but the containers cannot be reused or recycled.

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Definitions:

Long Run

A period of time in economics during which all inputs, including capital and labor, can be adjusted, and all markets are in equilibrium.

Shutdown Point

A situation in microeconomics where a firm's revenue is equal to its variable costs, indicating it would incur losses by continuing production.

Firm's Output

The overall amount of products or services generated by a company over a specific timeframe.

Short Run

A period in economics during which the quantities of one or more production inputs cannot be changed, making some costs fixed.