Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.

a. the effect of government regulation on a monopolist's production decisions.
b. the government's decision on how much to spend on public projects.
c. the effects of the internet on the pricing of used cars.

a. The effect of government regulation on a monopolist's production decisions: microeconomics

b. The government's decision on how much to spend on public projects: macroeconomics

c. The effects of the Internet on the pricing of used cars: microeconomics.

Explanation:

Le re-visit the concept of microeconomics and macroeconomics before we apply them to solve the problem.

Microeconomics studies about the behavior of players and how players in the economy ( individuals, households, firms) making decision of resources allocation, how they interact with one another. Thus, it usually studies about market of goods and services.

Macroeconomics studies about economy as a whole, that is, its structures, performances, behavior ( e.g: inflation, unemployment, GDP growth)

a. is microeconomics because it is about how monopoly firms decide its production level given changes in government's regulations.

b. is macroeconomics because it is about public spending ( spending for the whole economy)

c. is microeconomics because it is about how market of used cars is affected ( in term of pricing) as sellers and buyers have new ways of delivering/finding information and connections.

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