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Classify the following topics as relating to microeconomics or microeconomics.

(A) A student's decision about how to allocate his time between studying two subjects
(B) A firm's decision on which production method to use
(C) The effect of externality on the quantity produced by the market
(D) The effect of an increase in income tax on national income
(E) The effect of rent control on the housing market

User Antiqe
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Answer:

Related to Micro Economics : A, B, C, E.

Related to Macro Economics : D.

Step-by-step explanation:

Micro Economics is the study of a single individual consumer, producer, industry. Eg - Price of a good

Macro Economics is the study of all consumers, producers, industries of the economy at a whole. Eg - General Price level.

Both Micro Economics and Macro Economics deal with aggregates. But:- Micro Economic aggregates have lower level of aggregation & are contextually less related to wide total, than Macro Economics.

Micro Economics : 'A student's decision about how to allocate his time between studying two subjects' ; 'A firm's decision on which production method to use' :- are related to single economic units.

'The effect of rent control on the housing market' ; 'The effect of externality on the quantity produced by the market' :- are related to only those particular industry markets & not to economy as a whole.

Macro Economics : 'The effect of an increase in income tax on national income' :- is an impact of country's government policy at its whole national income.

User Sineth Lakshitha
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