Author Question: What is the difference between microeconomics and macroeconomics? What will be an ideal ... (Read 42 times)

JGIBBSON · **on:** Jun 29, 2018

What is the difference between microeconomics and macroeconomics?

What will be an ideal response?

Question 2

Tara, a pharmacist, is planning on opening her own pharmacy. Tara currently earns 50,000 a year at her job. She has calculated that it will cost her 6,000 in rent and utilities and 25,000 for an assistant per year to run her pharmacy.

What is the amount of opportunity cost that Tara incurs in running her own pharmacy? A) 31,000
B) 25,000
C) 50,000
D) 81,000

jgranad15 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Microeconomics studies the decisions of smaller economic actors, such as individual consumers or individual firms, and how the government can affect these decisions, say through how it regulates an industry. Macroeconomics studies the aggregate, or economy-wide, consequences of the decisions made by individuals and firms. Macroeconomics also studies the aggregate effects of government policies, such as the Federal Reserve's decisions to raise or lower interest rates.

Answer to Question 2

D