Think about the following news items. Which items involve a microeconomic issue and which involve a macroeconomic issue? A. WHO recommends tax of at least 20% on sugary drinks B. U.S. economy adds 227,000 jobs in January C. More police, managed more effectively can reduce crime D. 7 ways streaming music will change in 2021 Statement A involves a issue. Statement B involves a issue. Statement C involves a issue. Statement D involves a issue. A. macro; micro B. micro; macro C. macro; macro D. micro; micro

Question

Think about the following news items. Which items involve a microeconomic issue and which involve a macroeconomic issue? A. WHO recommends tax of at least 20% on sugary drinks B. U.S. economy adds 227,000 jobs in January C. More police, managed more effectively can reduce crime D. 7 ways streaming music will change in 2021 Statement A involves a issue. Statement B involves a issue. Statement C involves a issue. Statement D involves a issue. A. macro; micro B. micro; macro C. macro; macro D. micro; micro

Answer 1

To determine whether each statement involves a microeconomic or macroeconomic issue, we need to understand the definitions of these terms:- Microeconomics focuses on individual economic units such as households, firms, and markets. It examines how these units make decisions and interact with each other.- Macroeconomics looks at the economy as a whole. It studies aggregate indicators such as GDP, unemployment rates, and inflation, and how they are affected by government policies and other factors.Now, let's analyze each statement:A. WHO recommends tax of at least

on sugary drinks- This statement involves a policy recommendation that affects the pricing and consumption of a specific product. It deals with the behavior of individual consumers and firms in the market for sugary drinks. Therefore, it is a microeconomic issue.B. U.S. economy adds 227,000 jobs in January- This statement refers to a national economic indicator (employment) and its impact on the economy as a whole. It is a macroeconomic issue.C. More police, managed more effectively can reduce crime- This statement discusses the effectiveness of a policy intervention in reducing crime. It does not directly address economic units or their interactions. Therefore, it is neither a microeconomic nor a macroeconomic issue.D. 7 ways streaming music will change in 2021- This statement focuses on the future trends and changes in the music streaming industry. It examines the behavior of firms and consumers in this specific market. Therefore, it is a microeconomic issue.Based on this analysis, the correct answer is:Statement A involves a microeconomic issue. Statement B involves a macroeconomic issue.Statement C involves neither a microeconomic nor a macroeconomic issue. Statement D involves a microeconomic issue.So, the correct option is:B. micro; macro

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