Answer:
Microeconomics
Macroeconomics
Macroeconomics
Explanation:
Microeconomics studies how individuals and firms make decisions in allocating scarce resources.
Some of the topics studied in microeconomics are :
marginal utility
Demand and supply
Elasticity of demand and supply
Market structures
Macroeconomics studies the economy as a whole.
Macroeconomics concepts include:
national income
gross domestic product (GDP)
inflation
unemployment
The effect of a cigarette tax on the quantity of cigarettes sold studies the microeconomic concept of demand and supply.
The effect of a large government budget deficit on the economy's price level and the optimal interest rate for the Federal Reserve to target studies macroeconomics concepts
I hope my answer helps you
Answer:
B) Save her money.
Explanation:
The girl's utility of saving her money = √$15 = $3.87
If the girl starts her lemonade business, the expected utility of her investment = (50% x √$5) + (50% x √$27) = (50% x $2.236) + (50% x $5.196) = $1.118 + $2.598 = 3.72
Since the utility of saving her money ($3.87) is > than the utility obtained by the investment ($3.72), the girl should save her money.
Backed up with examples from the text
