Question

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

		the effect of foreign competition on the domestic auto industry
		the effect of an increase in interest rates on national saving
		the effect of a subsidy on the sales of solar panels
		the effect of an increase in the alcohol tax on the market for whiskey

Answer 1

The prime difference between microeconomics and macroeconomics thatmacro economics gives a wider or broader picture for the whole economy but micro of economics studies for individual, firm any kind of industry

In option A which can be clearly seen that it is talking about microeconomics concept in which the foreign competition effect effect on the domestic industries is seen so it gives an idea of an auto industry only

Similarly in option C where subsidy effect on solar panels can be seen

In option D it will come under the microeconomics because it gives a picture of alcohol tax effect on whiskey market

Only in option b it's talking about whole economy

When effect of increase in interest rate on National savings is seen

Hence the correct answer is option B