Which Is a Macroeconomic Decision

question 136

Multiple Choice

Which is a macroeconomic decision?

• A) How you divide your spending between food and clothing.
• B) You decide to buy a hybrid car in order to protect the environment.
• C) The Bank of Canada decides to raise interest rates.
• D) Whether or not you adopt a pet.
• E) How many hours a week you will work at a wage of $20 an hour.

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Definitions:

Coffee

A beverage made from roasted and ground seeds of the Coffea plant, consumed worldwide for its stimulating effects.

Optimal Consumption Rule

A principle in economics that determines the best combination of goods and services that maximizes the utility of a consumer given their budget constraints.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Consumption Bundle

A combination of goods and services that a consumer chooses to consume at a given time.