Question

Which of the following is a microeconomic question? Group of answer choices What are the total production levels in the economy? How can we reduce the unemployment rate among Hispanic men? What is the overall price level in the economy? How can we best encourage economic growth? What are the variables that determine the price of a specific good?

Answer 1

Answer:

What are the variables that determine the price of a specific good?

Explanation:

Economics can be classified into two (2) main categories and these include;

1. Macroeconomics: it can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

2. Microeconomics: can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.

Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.

An example of a microeconomic question is "What are the variables that determine the price of a specific good?"