Answer to Question #190130 in Microeconomics for bright

Question

a.      Nestle Ghana posted a 18% increase in sales”

1. “GRIDCO plans to slash more jobs”
2. “Ghana’s Output Grew by 5.8%”
3. “Housing starts soared 10% in September”
4. “Ghana to Breach key Deficit Target it helped to create”

 

Explain each issue why it is a microeconomic issue

Answer 1

Solution:

The main difference between microeconomics and macroeconomics is the segment. Microeconomics looks at small segments and macroeconomics look at the whole economy.

Microeconomics is concerned with individual markets and the behavior of firms and people, while macroeconomics is concerned with overall markets and the whole economy.

 

a.). Nestle Ghana posted a 18% increase in sales – This is microeconomics. It is a firm-specific news article that mentions the sales numbers of a single firm. It is not a matter that relates to the entire economy.

1.). “GRIDCO plans to slash more jobs” – This is microeconomics. This is because it relates to an individual’s firm labor market on how it is going to cut jobs. It does not impact the whole economy.

3.). Housing starts soared 10% in September – This is microeconomic. This is because it relates to a specific industry or market. It studies the effects of demand on an individual market, which is the housing industry. It does not impact the whole economy but rather the housing industry.