1)Which of the following is not included in the subject matter of macroeconomics? a

1)Answer: A

Macroeconomics studies the overall economy. Firms only make up one small part of the overall economy and in fact the study of he theory of the firm is part of microeconomics instead. Individual decision making is also a part of microeconomics. Inflation, the overall unemployment rate, and national income accounting all have to do with the overall economy and thus are part of macroeconomics.

2)The scenario described reflects a shift in the demand curve. Demand for the product has increased, because students want to get their hands on the ice cream cakes before the company goes out of business. Graphically, this is depicted as a complete rightward shift of the curve.

A movement along the demand curve reflects the inverse relationship between the price of a product and the quantity demanded. For example, if a local fast food restaurant were to triple the price of its most popular hamburger, the demand for it would decline, which is represented by an upward/leftward movement along the curve.