Economics is sometimes broken down into different categories.
1. Define positive and normative economics.
2. Define microeconomics and macroeconomics.
3. Categorize the following as microeconomic or macroeconomic questions:
a. What are the differences between the dairy industry and the airline industry?
b. Why are unemployment rates for teenagers rising?
c. Why are prices falling in the digital camera industry?
d. Why is the U.S. experiencing low rates of inflation?
e. How large is McDonald’s share of the fast food industry?
f. How will minimum wage rate changes affect your 17 year old brother’s budget?
g. Why are interest rates rising?
h. How will the elimination of the capital gains tax affect the level of investment in the US economy?
i. Why are economic growth rates different in the U.S. and China?