Question 15: The distinction between microeconomics and macroeconomics involves whether the focus of study involves small, well-defined groups and individual consumer, firms and sectors or large groups and broad economic aggregates.   A True B False

Question 14 Microeconomics focuses on: The workings of the whole economy or large sectors of it Issues such as unemployment and inflation The individual units that make up the economy Total output and the general level of prices

Why is it important for a good economic model tomake clear assumptions?

N Course: EC 201 Microeconomic P X MindTap - Cengage Learning X MindTap - Cengage Learning consider the market for bolts. su X + ← C ✰ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=56960519240215212983351261543&eISBN=9781305648173&id=1488825708&snapshotld=2941604& L Kathryn ✓ CENGAGE MINDTAP Q Search this course My Home Homework (Ch 05) X Courses Back to Assignment Catalog and Study Tools Attempts Keep the Highest / 2 Rental Options 5. The effect of negative externalities on the optimal quantityof consumption College Success Tips Career Success Tips Consider the market for bolts. Suppose that a hardware factory dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the factory. Producing an additional ton of bolts imposes a constant external cost of $175 per ton. The following graph shows the demand (private value) curve and the supply (private cost) curve for bolts. RECOMMENDED FOR YOU Use the purple points (diamond symbol) to…