Question
2. Is this news story a microeconomic story or a macroeconomic story? This news story is a __ story because __ A. macroeconomic DavidsTea operates in more than one country B. macroeconomic; it studies the effects of the pandemic af microeconomic DavidsTea has brick-and -mortar stores in only two countries D. microeconomic; it studies the choices made by an individual firm
Solution
3.6
(162 Votes)
Zachariah
Master ยท Tutor for 5 years
Answer
###D. microeconomic; it studies the choices made by an individual firm
Explanation
##Step 1: Identifying the Scope###The news story focuses on the decisions of a single firm, DavidsTea, within the larger context of the pandemic. This falls under the purview of microeconomics, which examines individual economic agents.##Step 2: Considering Macroeconomic Factors###While the pandemic itself is a macroeconomic event, the story's emphasis is on how DavidsTea reacted to it, not on the pandemic's broader economic effects. The fact that DavidsTea operates internationally doesn't automatically make it a macroeconomic story.#