Which of the following is the best example of a microeconomic topic?
A) The impact that the money supply has on inflation.
B) The reasons for increases in the price of soft drinks.
C) The effect that federal budget deficits have on the interest rate.
D) The tradeoff between inflation and unemployment.

Question

Quizplus · Accepted Answer

The reasons for increases in the price of soft drinks is a specific market phenomenon and is therefore an example of a microeconomic topic. The other choices involve broader economic issues and are therefore examples of macroeconomic topics.

Which of the Following Is the Best Example of a Microeconomic