assignmrnt 1 solutione (7) (3) maria.docx - Q1-1 Because microeconomics studies how families and companies choose and how to deal with markets this

assignmrnt 1 solutione (7) (3) maria.docx - Q1-1 Because...

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Q1-1 Because microeconomics studies how families and companies choose and how to deal with markets, this thing indicates that our study will be in the scope of a small or simple business like a small company. The small company will have no problem calculating production in different units. In microeconomics, too, we can measure production in terms of quantity, because it is on a small scale. As for macroeconomics, it is the study of economics as a whole. That is, in every country or all over the world, such as inflation and unemployment. In this case, we will not be able to measure the whole production in the microeconomics, as the issue here is more complicated and broader. Hence, we must summarize all the individual companies in the economy to obtain the total economy production or the GDP, and for this reason, it is not possible to summarize the different units. We have to convert to financial value first
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Q1-3 A) Final good. Consumer spending B) Final good. Government spending C) Intermediate good. Not calculated under
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