Questions and Answers
What is the focus of macroeconomics?
Studying the large-scale economy at regional, national, or global levels
What does microeconomics primarily study?
How economic choices of individuals, households, and businesses affect resource allocation and prices
How are microeconomics and macroeconomics interconnected?
Everyday microeconomic choices made by individuals and businesses contribute to broader regional and national trends studied in macroeconomics
Why do government and institutions seek to understand the relationship between macro and microeconomics?
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What does the law of supply state?
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What happens to the supply when the cost of production increases?
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What is the law of demand?
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What happens to the demand when income increases?
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What do the supply and demand curves show?
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What is a shortage on the supply and demand curve?
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What is a surplus on the supply and demand curve?
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What is the equilibrium on the supply and demand curve?
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What happens to the equilibrium price when the demand curve shifts right?
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What happens to the equilibrium price when the supply curve shifts right?
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