Question

Identify Whether Each Issue is Macroeconomic or Microeconomic and Why.

1.McDonald’s cuts 10% of its work force.



2. A recent hurricane devastates the Southeastern part of the US.



3. Ford comes out with a new electric vehicle to compete with Tesla.



4. The price of oil begins to climb rapidly.



5.The Consumer Confidence Index reaches an all time high.




6. A student is making a budget to decide how to pay for college.

Answer 1

see below

Step-by-step explanation:

Microeconomics deals with individual firms and citizens' decisions and how they affect the demand and supply of a particular good. Macroeconomics is concerned with changes in key economic variables that affect the entire economy, such as inflation and unemployment.

1.McDonald's cuts 10% of its workforce: Micro economic

This decision affects a single firm and not the entire country. Only employees of McDonald's will lose their jobs.

2. Hurricane devastates the Southeastern part of the US: Macroeconomic.

The hurricane will affect many sectors of the economy. The economic impact will be experienced by the whole country. For instance, the unemployment rate in the whole country will increase.

3. Ford comes out with a new electric vehicle: Microeconomics.

The development will affect only one sector of the economy. Only Tesla will experience increased competition.

4. The price of oil begins to climb rapidly. Microeconomics.

The affected price is of one commodity only,

5. The Consumer Confidence Index reaches an all-time high. Macroeconomic

The Consumer confidence index is a variable for the entire economy. It expresses how consumers feel about the general state of the economy.