1. Which of the following questions involve microeconomics, and which involve macroeconomics? In each case, explain your answer.
Why did consumers switch to smaller cars in 2008?
This is a microeconomic question because it addresses decisions made by consumers about a particular product.
Why did overall consumer spending slow down in 2008?
This is a macroeconomic question because it addresses consumer spending in the overall economy.
Why did the standard of living rise more rapidly in the first generation after World War II than in the second?
This is a macroeconomic question because it addresses changes in the overall economy.
Why have starting salaries for students with geology degrees risen sharply of late?
This is a microeconomic question because it addresses changes in a particular market, in this case the market for geologists.
What determines the choice between rail and road transportation?
This is a microeconomic question because it addresses choices made by consumers and producers about which mode of transportation to use.
Why did salmon get much cheaper between 1980 and 2000?
This is a microeconomic question because it addresses changes in a particular market.
Why did inflation fall in the 1990s?
This is a macroeconomic question because it addresses changes in a measure of the economy’s overall price level.