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1) Which of the following questions would most likely to be a topic for a microeconomics class? a) what would be the impact on competition in the cell phone market if there had been an ATT takeover of T-mobile? b) what is the main reason for the low inflation rate in the United States? c) what are government policies that would lower the unemployment rate? d) how does the Federal Reserve use the supply and demand for money to change interest rates?
1) Which of the following questions would most likely to be a topic for a microeconomics class?
a) what would be the impact on competition in the cell phone market if there had been an ATT takeover of T-mobile?
b) what is the main reason for the low inflation rate in the United States?
c) what are government policies that would lower the unemployment rate?
d) how does the Federal Reserve use the supply and demand for money to change interest rates?
Expert Solution
The answer to this question is:
a) what would be the impact on competition in the cell phone market if there had been an ATT takeover of T-mobile?
This is a microeconomics question because it is examining the decisions made by individual firms and their impact on the market. This question is likely to be addressed in a topic called Monopoly under a subtopic referred to as public policies for controlling monopolies.
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