Classify the following as microeconomics or macroeconomics and give and provide a justification for your choice by choosing answers from A-F to fit each statement below. ,The effect of rising oil prices on employment in the airline industry. - A comparison of alternative tax policies and their respective impacts on the rate of the nation’s economic growth. - Changes in the nation's unemployment rate over short periods of time. - The effect of changes in the household saving rates on the growth rate of national income. a- Micro. Examining one firm in the economy b- Macro e
1. Classify the following as
- A comparison of alternative tax policies and their respective impacts on the rate of the nation’s
- The effect of changes in the household saving rates on the growth rate of
a- Micro. Examining one firm in the economy
b- Macro examining one sector in the economy
c- Micro, examining one individual/household in the economy
d- Macro, examining the entire economy e-Micro examining one firm in the economy
f- Micro examining one sector of economy
2. Choose the most appropriate answer to fit the statements. Due to heavy rains the price of ground produces increase
a- Compare the cost versus benefits in the making
b- Diminishing returns
c- People are responding to an incentive
d- Cost-benefit analysis
e- Adding more variable factor to a given factor
f- Scarce resource so the choice has to be made
g- The situation does not represent a core principle
h- Scarcity, choice and
- Which core principle is represented in this scenario?
a- Compare the cost versus benefits in the making
b- Diminishing returns
c- People are responding to an incentive
d- Cost-benefit analysis
e- Adding more variable factor to a given factor
f- Scarce resource so the choice has to be made
g- The situation does not represent a core principle
h- Scarcity, choice and opportunity cost
3. Most government have a policy of not negotiating with kidnappers but relatives of kidnap victims do not have the same policy.
a- Compare the cost versus benefits in the making
b- Diminishing returns
c- People are responding to an incentive
d- Cost-benefit analysis
e- Adding more variable factor to a given factor
f- Scarce resource so the choice has to be made
g- The situation does not represent a core principle
h- Scarcity, choice and opportunity cost
- Which core principle represented this scenario? If any.
a. Compare the cost versus benefits in the making
b. Diminishing returns
c. People are responding to an incentive
d. Cost-benefit analysis
e. Adding more variable factor to a given factor
f. Scarce resource so the choice has to be made
g. The situation does not represent a core principle
h. Scarcity, choice and opportunity cost
4. Too many cooks spoil the broth.
a- Compare the cost versus benefits in the making
b- Diminishing returns
c- People are responding to an incentive
d- Cost-benefit analysis
e- Adding more variable factor to a given factor
f- Scarce resource so the choice has to be made
g- The situation does not represent a core principle
h. Scarcity, choice and opportunity cost
- Which core principle represented this scenario ? if any.
a. Compare the cost versus benefits in the making
b. Diminishing returns
c. People are responding to an incentive
d. Cost-benefit analysis
e. Adding more variable factor to a given factor
f. Scarce resource so the choice has to be made
g. The situation does not represent a core principle
h. Scarcity, choice and opportunity cost
5. Explain how the following situation will affect a nations
- What happens to PPF - - give an explanation
a. Produce inside PPF
b. PPF shift inwards
c. Increase in resources
d. Unused resources
e. Produce outside PPF
f. Reduction in resources
g. Increased production given resources
h. PPF shift inwards
6. An earthquake results in the death of over 4,000 individuals - What happens to PPF - Give an explanation
a. Produce inside PPF
b. PPF shift inwards c
. Increase in resources
d. Unused resources
e. Produce outside PPF
f. Reduction in resources
g. Increased production given resources
h. PPF shift inwards
7. The quality of education in the nations colleges and universities improve greatly. - What happens to PPF - Give an explanation
a. Produce inside PPF
b. PPF shift inwards
c. Increase in resources
d. Unused resources
e. Produce outside PPF
f. Reduction in resources
g. Increased production given resources
h. PPF shift inwards
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