Indicate if each newspaper headline below deals with a microeconomics (micro) or a macroeconomics (macro) issue.
Pepsi to Introduce a New flavor - micro
Russia Devalues Currency - macro
Red Cross Needs Blood- micro
Microsoft Still Tied-Up in Legal battle - micro
Federal Reserve Lowers Interest Rates - macro
Congress to Tackle Social Security - macro
Unemployment Reaches 20-Year Low - macro
Catholic Church Recruits More Priests - micro
Wal-Mart to Open 10 New Stores this Year - micro
China Tries to Limit the Number of Births - macro
YMCA Seeks Volunteers - micro
U.S. Trade Deficit Widens - macro
Library Extends Hours - micro
CBS Has New Fall Line-Up - micro
Michigan State Wins Four in a Row - micro
I can agree with those.
pepsi to introduce a new flavor
Pepsi to Introduce a New flavor - micro
Russia Devalues Currency - macro
Red Cross Needs Blood - micro
Microsoft Still Tied-Up in Legal battle - micro
Federal Reserve Lowers Interest Rates - macro
Congress to Tackle Social Security - macro
Unemployment Reaches 20-Year Low - macro
Catholic Church Recruits More Priests - micro
Wal-Mart to Open 10 New Stores this Year - micro
China Tries to Limit the Number of Births - macro
YMCA Seeks Volunteers - micro
U.S. Trade Deficit Widens - macro
Library Extends Hours - micro
CBS Has New Fall Line-Up - micro
Michigan State Wins Four in a Row - micro
To determine if each newspaper headline deals with a microeconomics or a macroeconomics issue, we can look at the scope of the issue being discussed.
Microeconomics focuses on individual entities such as households, businesses, and industries, whereas macroeconomics looks at the overall behavior of the economy as a whole.
Using this understanding, we can analyze each headline as follows:
1. Pepsi to Introduce a New Flavor - microeconomics (focuses on a specific product decision made by a single company)
2. Russia Devalues Currency - macroeconomics (involves a country-wide economic decision impacting the overall economy)
3. Red Cross Needs Blood - microeconomics (pertaining to specific local demand for blood)
4. Microsoft Still Tied-Up in Legal Battle - microeconomics (related to a specific company's legal issues)
5. Federal Reserve Lowers Interest Rates - macroeconomics (involves a central bank and monetary policy that affects the overall economy)
6. Congress to Tackle Social Security - macroeconomics (deals with a national-level policy issue)
7. Unemployment Reaches 20-Year Low - macroeconomics (relates to the overall employment situation in the economy)
8. Catholic Church Recruits More Priests - microeconomics (focused on recruitment activities of a specific organization)
9. Wal-Mart to Open 10 New Stores This Year - microeconomics (specific business expansion decision)
10. China Tries to Limit the Number of Births - macroeconomics (involves a national population control policy)
11. YMCA Seeks Volunteers - microeconomics (specific organization seeking volunteers)
12. U.S. Trade Deficit Widens - macroeconomics (concerns the overall trade imbalance of a country)
13. Library Extends Hours - microeconomics (pertains to a specific local library changing its operating hours)
14. CBS Has New Fall Line-Up - microeconomics (specific media company programming decision)
15. Michigan State Wins Four in a Row - microeconomics (concerns a specific college sports team's performance)
Remember, microeconomics is focused on individual economic entities, while macroeconomics deals with the overall behavior of economies.