Which of the following is a microeconomic issue?
A)The quantity of wheat grown in South Australia increases this year.
B)Growth in the Australian economy slowed.
C)The inflation rate fell this year.
D)Increased federal government expenditures have lowered the unemployment rate.
E)The Australian government cuts taxes to combat a recession.

Question

Quizplus · Accepted Answer

The quantity of wheat grown in South Australia increasing is a microeconomic issue because it pertains to the production and supply of a specific commodity within a particular region. It is a matter that affects individual producers and the market for wheat, rather than the overall economy.

(Note: Option E could also be considered a microeconomic issue as it relates to the individual tax burden and consumer spending habits, but the wording of the option implies a more macroeconomic context of combatting a recession.)

Which of the Following Is a Microeconomic Issue