Clearly show all Steps and Explanations, 80 Marks (5 marks included for quality)
Upload this document and type your answers directly below each question. 1. Difference Between microeconomics and macroeconomics. Identify each of the following topics as being part of microeconomics or macroeconomics, and state your reason why: 20 Marks (2 Marks each)
a. the impact of an increase in consumer income on the purchase of luxury automobiles
Answer to A. Microeconomics because it looks at economic problems faced by individual within the overall economy.
b. the effect of a change in the price of Coke on the purchase of Pepsi
Answer to B. Microeconomics because it is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services.
c. the impact of a war in the Middle East on the rate of inflation in the United States
Answer to C. Macroeconomics because it looks at economic problems faced by a nation as a whole.
d. factors influencing the rate of economic growth in Canada
Answer to D. Macroeconomics because it looks at economic problems faced by a nation as a whole.
e. factors influencing the demand for tractors
Answer to E. Microeconomics because it looks at economic problems faced by individual units within the overall economy.
f. the impact of Federal tax policy on national savings in Canada
Answer to F. Microeconomics because it is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers
g. the effect of pollution taxes on the Canadian lumber industry
Answer to G. Microeconomics because It is mainly interested in the decisions of individuals concerning using their own limited resources for their Cost of Living and the impact of those decisions on the demand and supply of specific goods or services.
h. the amount of competition