Question 2. Are microeconomics and macroeconomics interdependent?

Micro VS Macroeconomics? Classify the following questions as Microeconomics or Macroeconomics and provide a justification for your choice. a) How will the market for melons be affected after Hurricane Dean? b) How much will the American economy grow this year? c) What are the factors which determine the choice that a person makes between buying a Honda Accord or a Toyota Corolla? d) What will the inflation rate be for Belize?

What is economics and why is it a relevant subject?

Can you confirm that I am correct with these positive and normative statements: Positive statement: When oil production slows in Texas, employment and tax revenues decline, and budget cuts at the state and local levels often follow. (Craymer has estimated that the state loses $85 million per year for every $1 decrease in oil prices.) Normative statement:If Russia agrees to production cuts and COVID-19 goes dormant in the hot summer months, as some experts expect, Texas’ coffers will have time to recover before lawmakers convene in 2021 to write a new budget. Or would this be a normative statement:Experts said Texas is better positioned to handle an oil price collapse today thanks to a diversified economy. The last collapse in oil prices, in 2014, also forced the industry to cut costs and otherwise become more efficient. But University of Texas at Austin energy resources professor Michael Webber said COVID-19 throws an unprecedented economic variable into the mix.

Economics is mainly classified into ......................... a)     Macroeconomics b)     Business studies c)     Both Macroeconomics and Microeconomics d)     Microeconomics

“Scarcity is the fundamental problem that every nation in this world faces.”  What do you mean by this statement?  If you were an economist how would you address this fundamental problem?

True or False?

1.1 Economic models that assume that wages and prices adjust freely to changes in demand and supply are known as.............        models.

Why is it important to be able to distinguish positive from normative statements about economic policy?   Question 8 options:   Positive statements are always true and are the basis of economic policy while normative statements are false and should NEVER be used.   Positive statements help us understand the value judgments toward a particular policy, while normative statements reflect the economy's response.   Positive statements help us understand the economy's response to a particular policy, while normative statements reflect value judgments.   Positive statements help us understand the good results of a policy change, and normative statements help us understand the negative results.

In economics, positive statements are about_______ A the way things ought to be B the way things are. C macroeconomics, not microeconomics D.microeconomics, not macroeconomics