Which of the following would represent a microeconomic question?
A)How will a decrease in government spending affect the output gap?
B)How will a merger of two local banks affect competition and prices for banking services?
C)What type of unemployment is on the rise?
D)How have the changes in types of unemployment affect the efficiency of the labor force?

Question

Quizplus · Accepted Answer

Option B is a microeconomic question because it deals with the impact of a specific event, i.e. a merger of two local banks, on the competition and prices for banking services. Microeconomics studies the behavior of individuals and firms in making decisions regarding the allocation of resources and how these decisions impact the supply and demand for goods and services in the market. The other options deal with macroeconomic concepts such as government spending, output gap, and types of unemployment, which are concerned with the overall performance of the economy rather than specific individuals or firms.

Which of the Following Would Represent a Microeconomic Question