Define the term microeconomics.
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Define the term microeconomics.
Microeconomics is the study of individual markets, rather than the economy as a whole.
What is macroeconomics?
Macroeconomics is the study of economic behaviour and decision making in the entire economy, rather than just an individual market.
What are multinational corporations (MNCs)?
Multinational corporations (MNCs) have manufacturing facilities in multiple countries.
True or False?
Microeconomics examines the role of the government in achieving economic growth and human development.
False.
Macroeconomics examines the role of the government in achieving economic growth and human development.
Define the term fiscal policy.
Fiscal policy refers to the government's use of taxation and spending to influence the economy.
What does the term monetary policy mean?
Monetary policy refers to the actions taken by the central bank to influence the money supply and interest rates in an economy.
True or False?
Microeconomics examines the different choices individuals, households, and firms make.
True.
Microeconomics examines the different choices individuals, households, and firms make.
State two examples of what is studied in macroeconomics.
Macroeconomics includes the study of any of the following two:
Price levels (inflation)
Unemployment
Total demand in an economy
Total supply in an economy
True or False?
Consumer behaviour is part of the study of microeconomics
False.
Consumer behaviour influences both firms and the national economy, so it is part of both microeconomics and macroeconomics