Suppose that the government has raised by $10 a per-carat tax rate it imposes on diamonds in an effort to influence production of this particular good by each of the firms that produce it and purchases by individual consumers. Would we apply microeconomic or macroeconomic analysis to analyze this policy action?

Question

Suppose that the government has raised by $10 a per-carat tax rate it imposes on diamonds in an effort to influence production of this particular good by each of the firms that produce it and purchases by individual consumers. Would we apply microeconomic or macroeconomic analysis to analyze this policy action?

Part 2
A.
We would apply macroeconomic analysis because this policy action would affect decision making undertaken by individuals (or households) and by firms.
B.
We would apply microeconomic analysis because this policy action would affect decision making undertaken by individuals (or households) and by firms.
C.
We would apply macroeconomic analysis because this policy action would affect the behavior of the economy as a whole.
D.
We would apply microeconomic analysis because this policy action would affect the behavior of the economy as a whole

Answer 1

B. We would apply microeconomic analysis because this policy action would affect decision making undertaken by individuals (or households) and by firms.

Answer 2

B. We would apply microeconomic analysis because this policy action would affect decision making undertaken by individuals (or households) and by firms.

B. We would apply microeconomic analysis because this policy action would affect decision making undertaken by individuals​ (or households) and by firms.

B. We would apply microeconomic analysis because this policy action would affect decision making undertaken by individuals​ (or households) and by firms.

B. We would apply microeconomic analysis because this policy action would affect decision making undertaken by individuals (or households) and by firms.

B. We would apply microeconomic analysis because this policy action would affect decision making undertaken by individuals (or households) and by firms.