1. What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one.
A) The difference between micro and macroeconomics is that microeconomics deals with how individuals and firms make decision in the face of scarcity and the impacts of the decision on the market. Hence, microeconomic focus on a part of the economy of a country. While macroeconomics deals with how a nation makes a decision in the face of scarcity and the impact of the decision on the economy. Hence, macroeconomic focus on the economy of a country as a whole.
B) An example of a microeconomic phenomenon is the rise in the price of Dangote cement from ₦1700 to ₦2300.
An example of a macroeconomic phenomenon is the level of employment and …show more content…
It relates the story of a boy who won $200. Instead of investing it in a stock that will generate $75,000 when compounded over a period of 60years at a rate of 10% per annum, the boy made his choice to use the $200 which is the scare resource to buy Sneakers. Thereby forgoing an alternative use of the scare resource that would have to earn him $75,000 which is his opportunity cost for buying the $200 sneakers.
D) I found the article interesting because it makes me understand how the choices I make about what is important now is related to making choices about the future.
3. Provide an example of a sunk cost. How does this differ from a marginal cost? Explain a time you did (or should have) used marginal analysis to solve a problem.
A) An example of a sunk cost is the cost incurred in the research and development of a product that fails in the
A) The difference between micro and macroeconomics is that microeconomics deals with how individuals and firms make decision in the face of scarcity and the impacts of the decision on the market. Hence, microeconomic focus on a part of the economy of a country. While macroeconomics deals with how a nation makes a decision in the face of scarcity and the impact of the decision on the economy. Hence, macroeconomic focus on the economy of a country as a whole.
B) An example of a microeconomic phenomenon is the rise in the price of Dangote cement from ₦1700 to ₦2300.
An example of a macroeconomic phenomenon is the level of employment and …show more content…
It relates the story of a boy who won $200. Instead of investing it in a stock that will generate $75,000 when compounded over a period of 60years at a rate of 10% per annum, the boy made his choice to use the $200 which is the scare resource to buy Sneakers. Thereby forgoing an alternative use of the scare resource that would have to earn him $75,000 which is his opportunity cost for buying the $200 sneakers.
D) I found the article interesting because it makes me understand how the choices I make about what is important now is related to making choices about the future.
3. Provide an example of a sunk cost. How does this differ from a marginal cost? Explain a time you did (or should have) used marginal analysis to solve a problem.
A) An example of a sunk cost is the cost incurred in the research and development of a product that fails in the