In broad terms the difference between microeconomics and macroeconomics is that
ID: 1169605 • Letter: I
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In broad terms the difference between microeconomics and macroeconomics is that microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. they use different sets of tools and ideas. macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not. microeconomics studies the effects of government taxes on the national unemployment rate. The law of supply states that the quantity of a good supplied varies directly with income. directly with its price. directly with population. inversely with the price of substitute goods, ('^inversely with its price, Pure public goods are: rival, divisible, and excludable. free to everyone at zero cost...i.e. free goods. non-rival, non-divisible, and non-excludable. rival but non-divisible and non-excludable. Given the table above and assume that guns are represented on the Y axis and butter on the X axis. The opportunity cost of increasing butter production from 3 to 4 is guns. 2 15 25 10 Which of the following explains why demand curves slope downward? V / A) diminishing marginal utility B) resources and technology substitutes and complements D) prices and income The fallacy of composition is the false belief that because event A occurred before event B, event A caused event B. what is true for each part is also true for the whole. because event A occurred after event B, event A caused event B. the ceteris paribus condition does not apply. If the price of a substitute good in consumption good falls (ceteris paribus), its effect on the good falls (ceteris paribus), its effect on the good in question: supply increases, price falls, and quantity demanded increases. demand decreases, price decreases, quantity supplied decreases. supply decreases, price rises, and quantity demanded decreases. demand increases, price increases, quantity supplied increases.Explanation / Answer
Q17. Microeconomics studies the economic actions and behavior of individual units or small group of individual units with in an economy. In other words, subject matter of microeconomics pertains to economic decisions being made by the individual units comprising the whole economy.
On the other hand, macroeconomics study the behavior of large aggregates such as national income, total employment, general price level of the economy. In other words, macroeconomics study economy as a whole.
Hence, the correct answer is option (A).
Q18. According to Law of Supply, other factors remaining constant, when price of a good rises, its quantity supplied increases and when price of a good falls, its quantity supplied decreases.
Thus, there exists a direct relationship between price of a good and its quantity supplied.
Hence, the correct answer is option (B).
Q19. Pure Public Good refers to those goods from whose consumption, nobody can be excluded and whose consumption by one does not reduce the quantity available for others.
apart from this, pure public goods are consumed in totality and not in parts.
So, pure public goods are non-rival, non-excludable, and non-divisible.
Hence, the correct answer is option (C).
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