Macroeconomics Is Based on Microeconomics for All of the Following

question 57

Multiple Choice

Macroeconomics is based on microeconomics for all of the following reasons except:

• A) when we study the economy as a whole, we must consider the decisions of individual economic actors.
• B) aggregate variables are simply the sum of variables describing many individual decisions.
• C) macroeconomic decision makers, when they make their choices, are required to maximize utility functions.
• D) to understand the determinants of aggregate investment, we must think about a firm's deciding whether to build a new factory.

---

Definitions:

Property Taxes

Taxes imposed by local governments on the value of real estate property, with rates and methods determined by local jurisdictions.

Other Financing Resources

Funds that are sourced externally, which can include debt, equity financing from investors, or loans from financial institutions, not related to operations.

Annual Budget

A financial plan for a year, outlining expected revenues and expenditures.

Restricted Grant

A grant that comes with specific conditions stipulated by the donor that dictate how the funds can be used.