Which of the following lies primarily within the realm of microeconomics?
A)an empirical analysis of the relationship between the growth of the money supply and the rate of inflation
B)an economic model forecasting the impact of a tax increase on consumer spending and national output
C)a study of supply and demand conditions in the market for orange juice
D)a model forecasting the impact of a change in interest rates on the level of investment in the economy

Question

Which of the following lies primarily within the realm of microeconomics?
A)​an empirical analysis of the relationship between the growth of the money supply and the rate of inflation
B)​an economic model forecasting the impact of a tax increase on consumer spending and national output
C)​a study of supply and demand conditions in the market for orange juice
D)​a model forecasting the impact of a change in interest rates on the level of investment in the economy

Quizplus · Accepted Answer

The study of supply and demand conditions in a specific market, such as orange juice, falls primarily within the realm of microeconomics, as it focuses on the behavior of individual consumers and producers in that market. Option A and D are more macroeconomic in nature as they involve analyzing the economy as a whole, while option B could involve both micro and macroeconomic factors depending on the specific context.

Which of the Following Lies Primarily Within the Realm of Microeconomics