Classify the following topics as relating to microeconomics or microeconomics. a. A student's decision about how to

Question

Classify the following topics as relating to microeconomics or microeconomics. a. A student's decision about how to allocate his time between studying two subjects b. A firm's decision on which production method to use c. The effect of externality on the quantity produced by the market d. The effect of an increase in income tax on national income e. The effect of rent control on the housing market.

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A student's decision about how to allocate his time between studying two subjects is related to micro-economics. The argument is due to the idea that it is concerned with the behavior at the individual levels. A firm's decision on which production method to use is related micro-economics as it is confined to the company level. Important to note, the decision only affects the company but not the economy. The effect of externality on the quantity produced by the market is related to micro- economics. Ideally, the externalities affect the economy at large. The idea is due to the fact that demand for commodities affects the aggregate market for commodities. The effect of an increase in income tax on national income is related to macro-economics. Notably, the government collects revenue from taxes. As thus, changes in national income affect the economy at large. The effect of rent control on the housing market is related to micro-economics. Notably, rent controls affect a particular segment of the entire economy; housing sector hence the classifying it in micro-economics.

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Classify the following topics as relating to microeconomics or microeconomics

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