Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 2 - Part I - Thinking Like an Economist - Problems and Applications - Page 36: 5

Answer

a) microeconomics b) macroeconomics c) macroeconomics d) microeconomics e) macroeconomics

Work Step by Step

a) Since the decision maker is the household, microeconomics would be the subfield. b) Since the government regulations are the subject being studied, macroeconomics is the subfield. (The regulations affect the entire economy.) c) Economic growth is the topic being studied, which falls under macroeconomics. d) The firm hiring workers is the item being studied, and microeconomics studies how firms make decisions. e) Inflation rates and how the quantity of money affects the economy is covered in macroeconomics.
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