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Which question is an illustration of a microeconomic question?

A. Is the quantity of wine purchased in one year dependent upon the price of wine?
B. Does government spending influence the total level of employment in the economy?
C. Is the purchasing power of the dollar higher or lower today than it was in 2005?
D. Is capitalism superior to socialism?

User Joash
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Final answer:

Option (A), The question 'Is the quantity of wine purchased in one year dependent upon the price of wine?' is an example of a microeconomic question, as it deals with how consumers respond to price changes in a specific market.

Step-by-step explanation:

The question 'Is the quantity of wine purchased in one year dependent upon the price of wine?' is an illustration of a microeconomic question. Microeconomics focuses on the decisions of individuals and firms regarding the allocation of resources and the prices of goods and services. It studies how household budgets are spent, how businesses decide on production levels, and how prices are determined in individual markets.

Therefore, a question examining the relationship between the price of a product, such as wine, and the quantity of that product purchased by consumers, delves into the microeconomic theory of supply and demand, and how consumers respond to price changes.

User Kishan Gajjar
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