An increase in production costs at a Ford automobile plant, and an increase in the general level of prices in the U.S. economy are examples of:
A) microeconomic problems.
B) macroeconomic problems.
C) a microeconomic problem and a macroeconomic problem, respectively.
D) a macroeconomic problem and a microeconomic problem, respectively.

Question

Quizplus · Accepted Answer

An increase in production costs at a Ford automobile plant is a microeconomic problem because it pertains to a specific company's operations. An increase in the general level of prices in the U.S. economy is a macroeconomic problem because it affects the economy as a whole.

An Increase in Production Costs at a Ford Automobile Plant