Chapter 1, Problem 5MCQ

To determine

The question requires us to determine a suitable option which represents the microeconomics phenomenon.

Explanation of Solution

Microeconomics deal with the problems or events at micro or individual level, for example, price of a product, profit and loss of a particular firm in a given financial year, a consumer’s choices and preferences, and so on.

Macroeconomics deal with the problems and events on macro or national level, for instances, inflation and unemployment rate in an economy, rate of exchange, growth rate of GDP and per capita income, , and so on.

In the given options: Policy support to promote employment, employment rate this year, level of prices (or change in inflation rate), and overall salary levels given to the workers in a year are the examples of macroeconomics.

A person should go to college or get a job after graduation is an individual level problem. So, this is an example of microeconomics.