Author Question: After Hurricane Katrina devastated parts of Mississippi and New Orleans in 2005, we can be sure that ... (Read 382 times)

kwoodring · **on:** Jun 29, 2018

After Hurricane Katrina devastated parts of Mississippi and New Orleans in 2005, we can be sure that the production possibilities frontier for that area temporarily

A) shifted inward, toward the origin.
B) shifted outward, away from the origin.
C) became flatter.
D) became steeper.

Question 2

How does microeconomics differ from macroeconomics?

What will be an ideal response?

essyface1 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

Microeconomics is the study of how individuals, households, firms, and governments make choices, and how those choices affect prices, the allocation of resources, and the well-being of other agents. On the other hand, macroeconomics is the study of the economy as a whole. The scope of macroeconomics extends to the study of economy-wide phenomena, like the growth rate of an economy, the nation-wide unemployment rate, or the inflation rate.