Question

Which of the following is a microeconomic topic? i. K-Mart's decision to close stores that are not making a profit ii. Home Depot's choice to hire more full-time employees because its sales increased iii. Delta Airlines changes its fares.

Answer 1

I, II and III

Step-by-step explanation:

All of these factors concern microeconomic decisions. Microeconomics is the branch of economics that analyzes the individual behavior of firms and consumers. If a firm takes action to shut down, it affects the sector of that firm, analyzed by microeconomics. Similarly, decisions on hiring human capital and raising tariffs are individual decisions of the firm.

Unlike microeconomics, macroeconomics studies the behavior of aggregate economic variables such as inflation, unemployment, GDP, and so on.