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Posted: April 10th, 2022
Cost of macroeconomic and microeconomic events
Opportunity Cost of Macroeconomic and Microeconomic Events
The market system cannot supply each person with an unlimited amount of resources, so choices must be made. Given the following events,
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Identify whether this event is a macroeconomic issue or a microeconomic issue and explain why you came to that conclusion.
Define the opportunity cost that an individual or society would incur if that event occurred.
Events
The Wacky Widget Factory, a firm, decides to produce 5,000 gadgets instead of 10,000 widgets.
The U.S. government reduces funding for the Environmental Protection Agency, an agency in charge of regulating and monitoring the level of all pollution in the U.S., by $250 billion to reduce taxes on the wealthiest Americans.
A state reduces taxes on large businesses that move their production to their state and pays for it by raising taxes on existing residents.
Local public education funding is reduced and reallocated to improve streets and other infrastructure to attract new business.
The Federal Aviation Administration (FAA) requires all passengers to submit to increases in security screening, which leads to increased waiting times to increase airline protection.
Submission Requirements:
Attach a Word document of 150 to 250 words that contains all answers.
Format: Double line space, Times New Roman, 12-point font
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