Question

Question 1: Fill in the blanks: Indicate whether the following issue concerns microeconomics or macroeconomics: Economics growth ____

Question 2: Fill in the blanks: Indicate whether the following issue concerns microeconomics or macroeconomics: The impact of workers’ productivity on a company’s decision to expand production or not ____

Question 3: Fill in the blanks: Indicate whether the following issue concerns microeconomics or macroeconomics: Government introduces a national program designed to increase physical fitness in the population. ____

Question 4:  Fill in the blanks: Indicate whether the following issue concerns microeconomics or macroeconomics: Competition between Air Canada and West Jet ____

Answer 1

1. Macroeconomics.

Economic growth is an increase in the the production of economic goods and services, compared from one period of time to another. It can be measured in nominal or real (adjusted for inflation) terms. Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation. Economic Growth can be determined by considering the economy as a whole .

2 Microeconomics

Microeconomics is the study of decisions made by people and businesses regarding the allocation of resources and prices of goods and services. For example, microeconomics examines how a company could maximize its production and capacity so that it could lower prices and better compete in its industry.

Here the company will take decision to expand output or not based on the productivity of the workers. This decision is most relevant to company and will affect the company.

3.Macroeconomics

Here the whole economy will be affected. The government is introducing a national program which will increase the physical fitness of the people. This decision will affect the economy or country as a whole.

4 Microeconomics.

The Competition between two companies Air Canada and West Jet will affect the profitibality of these two companies. The competition may either increase or decrease the profitability of these two companies. These companies may either gain or loose customers. The effects whether positive or negative will be borne by these two companies.