Indicate whether the following question is relevant for the study of macroeconomics, the study of microeconomics, the study of both, or neither.

a. How will Ms. Martin's tips change when a large manufacturing plant near the restaurant where she works closes?

b. What will happen to spending by consumers when the economy enters a downturn?

c. How will the price of oranges change when a late frost damages Florida's orange groves?

d. How will wages at a manufacturing plant change when its workforce is unionized?

e. What will happen to U. S. exports as the dollar becomes less expensive in terms of other currencies?

f. What is the relationship between a nation's unemployment rate and its inflation rate?

Question

Social Studies

Jerome Anthony

22 January, 00:25

Indicate whether the following question is relevant for the study of macroeconomics, the study of microeconomics, the study of both, or neither.

a. How will Ms. Martin's tips change when a large manufacturing plant near the restaurant where she works closes?

b. What will happen to spending by consumers when the economy enters a downturn?

c. How will the price of oranges change when a late frost damages Florida's orange groves?

d. How will wages at a manufacturing plant change when its workforce is unionized?

e. What will happen to U. S. exports as the dollar becomes less expensive in terms of other currencies?

f. What is the relationship between a nation's unemployment rate and its inflation rate?

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Answers (1)

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Jayden Higgins · Answer 1

In this question we need to categorize the given statements in either micro or macro economics.

Micro economics deals with the economics at individual, group or company level. Macro economics deals with the economics at national or international level.

So the statements are categorized as follows:

1) How will Ms Martin's tips change when a large manufacturing plant near the restaurant where she works closes. Microeconomics. - This is because it deals with an individuals choice and does not have a national impact.

2) What will happen to spending by consumers when the economy enters a downturn. Macroeconomics. - This deals with a larger economic problem of how consumer spending can have an impact on everyone.

3) How will the price of oranges change when a late frost damaged Florida's orange groves. Macroeconomics. - Again, this is a State level situation and while it will have an impact on individuals, the real impact would be felt by millions of people.

4) How will wages at a manufacturing plant change when its workforce is unionized. Microeconomics. - This deals with a low-scale problem with a business. If we were talking about national labor unions, than it could have been a marcoeconomic situation.

5) What will happen to US exports as dollar becomes less expensive in terms of other currencies. Macroeconomics. - As Dollar becomes less expensive, US exports will rise as they will have more demand. This is a macroeconomic situation.

6) What is the relationship between a nations's unemployment rate and its inflation rate. Macroeconomics. - The higher the unemployment, to some extent, inflation rate might decrease. This is an example of macroeconomics.