Question

The basic difference between macroeconomics and microeconomics is: a. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade b. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms. c. microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. d. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment. 5. Scarcity implies that: a consumers would be willing to purchase the same quantity of a stood at a higher price. b. it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available. c. at the current market price, consumers are willing to purchase more of a good than suppliers are willing to produce. d. consumers are too poor to afford the goods and services available. 6. The demand schedule for a good: a. indicates the quantity that people will buy at the prevailing price. indicates the quantities that suppliers will sell at various market prices. e is determined primarily by the cost of producing the good. d. indicates the quantities that will be purchased at alternative market prices.

Answer 1

4. c is correct

Microeconomics deal with individual units and macroeconomics deal with the economy as a whole.
5. b is correct
6. d is correct