Which of the following topics would be covered in microeconomics?
A)The effects of an increase in the supply of lumber on the homebuilding industry.
B)The unemployment rate.
C)The effects of interest rates on the overall economy.
D)The inflation rate.

Question

Which of the following topics would be covered in microeconomics?
A)​The effects of an increase in the supply of lumber on the homebuilding industry.
B)​The unemployment rate.
C)​The effects of interest rates on the overall economy.
D)​The inflation rate.

Quizplus · Accepted Answer

Microeconomics focuses on the behavior of individual economic actors, such as households and firms, and the markets in which they interact. The effects of an increase in the supply of lumber on the homebuilding industry is a topic that falls under microeconomics as it deals with a specific market and the behavior of the firms that operate within it.

Option B, C, and D all deal with macroeconomics as it involves the study of the economy as a whole. The unemployment rate, effects of interest rates on the economy, and the inflation rate are all indicators of the overall health of the economy and how it is affected by different policies and external factors.

Which of the Following Topics Would Be Covered in Microeconomics