Question

Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?

A. the effect of taxes on the prices of airline tickets and the profitability of automakers
B. the price of beef and wage differences between genders
C. how consumers maximize utility and how prices are established in markets for agricultural products
D. the percentage of the labor force that is out of work and cross-country differences in average income

Answer 1

D. The percentage of the labor force that is out of work and cross-country differences in average income.

Macroeconomists typically focus on the overall behavior of the economy, including aggregate measures such as unemployment rates, inflation, and national income.

The percentage of the labor force that is out of work and cross-country differences in average income are examples of macroeconomic topics.

In contrast, microeconomists study individual markets, individual consumer and producer behavior, and specific economic agents, making choices within those markets.

Options A, B, and C are more aligned with microeconomic topics, as they involve specific markets, prices, and individual consumer and producer decisions.