Question

2.​Which of the following is a microeconomic question?

a.​How many textbooks should be published by a publisher?

b.​How many high school graduates in a country go to college?

c.​How much did the cost of living in a city increase last year?

d.​What is the rate of unemployment?

e.​What is the total population of a city?

3. The government offers subsidies for people to start their businesses. Because of that, more people choose to start a business instead of going to college. This government subsidies serve as a(n) ________ incentive for people not to go to college.

a.​direct​​​d.​complementary

b.​indirect​​e.​unintended

c.​neutral

Answer 1

Answer 2. The correct answer is a. How many textbooks should be published by a publisher?

Explanation: microeconomics deals with individual market and individual people. Here we are talking about a single market of books and a single publisher therefore this is question belongs to microeconomics.

Answer 3. The correct answer is b. Indirect (unintended)

Explanation: The main motive of the government by providing subsidies was to empower small businessmen and encourage them to start their own businesses. Increase in number of business organization is a direct incentives. However people excepted it in a different manner and stopped going to colleges in order to start their own business. This is an indirect incentive which means that government didn't want this to happen and it was purely unintended.

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