<span title="Microeconomics/Macroeconomics">Microeconomics/Macroecono...</span> Help?

Question

Are each of these a micro or macroeconomics issue and a short description of why?

1) The effect of higher cigarette taxes on the quantity of cigarettes sold.

2) The effect of higher income taxes on the total amount of consumer spending.

3) The reasons for the economies of East Asian countries growing faster than the economies of sub-Saharan African countries.

4) The reasons for low rates of profits in the airline industry.

Thanks.

Answer 1

1) Microeconomic -- deals with the market for a single product

2) Macroeconomic -- deals with entire economy, not specific industries

3) Macroeconomic -- deals with entire countries&#039; economies

4) Microeconomic -- deals with single industry, although some of the reasons could be macroeconomic

Answer 2

actually you can look at it on either macro or micro issue, depending on what side you are analyzing

just like:

1. quantity of cigarettes sold - production of the firm - micro

2. total amount of consumer spending - aggregate expenditure - macro

3. economic growth - economic development - macro

4. low rates of profits - profit - micro