Question 1
Microeconomics is best described as the study of
◦ the relationship between inflation and wage inequality.
◦ very large issues.
◦ the choices made by individual households, firms, and governments.
◦ the nation's economy as a whole.
Question 2
We can use macroeconomic analysis to
◦ study the choices made by households.
◦ understand marginal changes in the macroeconomy.
◦ understand why economies grow.
◦ learn how to balance a checkbook.