please help?

Question

indicate whether each of the following statements applies to microeconomics or macroeconomics:
a)the unemployment rate in the united states was 4.2% in Jan. 01
b)the Alpo dog-food plant in Bowser, Iowa laid off 15 workers
c) an unexpected freeze in central florida reduced the citrus crop and caused the price of oranges to rise
d)u.S. output, adjusted for inflation, grew by 5% in 2000
e)last week Fargo Bank lowered its interest rate on business loans by one-half of 1%age point
f)the consumer price index rose by 3.4% in 2000

Answer 1

Microeconomics deals with individuals - whether consumers, firms, homogeneous groups or industries.

Macroeconomics deals with the economy as a whole.

a) unemployment rate is a classic macroeconomic problem since it affects or refers to the economy as a whole.

b) Alpo dog-food plant is a single firm and therefore the firm's demand for labor is a microeconomics issue.

c) the effect of the Florida freeze on the supply and price of one good (namely, oranges) relates to factors affecting a leftwards shift in the supply curve for oranges and therefore it is a microeconomics problem.

d) 'output' is a macroeconomic aggregate since it refers to the sum total of all production in the economy. Note that the issue here is more one of output than of inflation. Real output (i.e. output adjusted for inflation) measures the growth of the economy.

e) the decision made by Fargo Bank, an individual firm, is an issue in microeconomics. The interest rate is the 'price' which relates to the demand and supply of loans by this bank.

f) the consumer price index measures the increase or decrease in the typical basket of goods purchased by the average consumer. It is a measure of inflation in the economy. It is a macroeconomic statistic since it doesn't relate to any one particular individual. Instead, it is derived from a sample of the total purchases of all the consumers in the economy.

Answer 2

Macro means big.
Micro means small.
Macroeconomics deals with the big picture stuff -- an entire country's economy, or an entire industry. Big picture examples are the unemployment rate for the entire U.S. economy, the price of oranges for the entire Florida crop, output for the entire United States, or the Consumer Price Index, which measures inflation throughout the entire United States. It is not something that a single company or individual can decide all alone. It is the trend that results from a multitude of actors.

Microeconomics deals with the individual company or person -- the little guy. A single dog food company decides for itself to lay off 15 workers. A particular bank decides to lower the interest rates it charges for business loans. This is Microeconomics -- the decisions made by the one single person or the one single company (even if it's a very big company).

Answer 3

How about you get off the computer and just do your own homework?....lol