1-.Below are six statements. Indicate whether each one belongs to microeconomics (MIC) or macroeconomics (MAC).
(a) "The inflation rate in the United States reached its lowest level in the last twenty years."
(b) "Microsoft's profits rose 20 percent last quarter."
(c)“El Niño rains hit the California region again, causing serious flooding on farms. Prices of citrus and agricultural products are expected to increase considerably."
(d) "The nation's economy grew at an annual rate of 3.7 percent in the last quarter of the year."
(e) "The trade deficit in the United States was $20 billion last month."
(f) "General Motors plans to spend $800 million on a new auto plant

4-.Explain how each event affects production possibilities.
(a) The population becomes more educated over time as the number of high school dropouts decreases and the number of college graduates increases.
(b) The unemployment rate decreases from 7.3 to 4.5 percent of the labor force.
(c) Businesses and government cannot solve a major computing problem, reducing economic efficiency and national production.
(d) Advances in telecommunications and new technologies contribute significantly to economic growth over time.
(e) Congress and the President decide to allocate more resources to national defense.
(f) A nation engages in increased international trade with other nations of the world

Answer rating: 100% (QA)

1 Identifying whether each statement belongs to microeconomics MIC or macroeconomics MAC a MAC b MIC ... View the full answer