Which of the following is a microeconomic statement?

• A. The central bank has decided to lower interest rates to stimulate the economy.
• B. The price of smartphones has decreased due to increased competition among manufacturers.
• C. The government is planning to increase overall spending on infrastructure projects.
• D. The national unemployment rate has fallen to its lowest level in a decade.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the difference between microeconomics and macroeconomics. Microeconomics focuses on individual markets, firms, and consumers, while macroeconomics deals with the economy as a whole, including aggregate indicators like national unemployment or overall spending.
2. Step 2: Analyze each statement to determine its scope. For example, statements about central bank interest rates, government spending, and national unemployment relate to the entire economy, which is macroeconomics.
3. Step 3: Identify the statement that deals with individual markets or firms. The statement about the price of smartphones changing due to competition among manufacturers focuses on a specific market and firm behavior, which is microeconomics.
4. Step 4: Confirm that the chosen statement involves price changes and competition at the market level, key topics in microeconomics.
5. Step 5: Conclude that the microeconomic statement is the one about the price of smartphones decreasing due to increased competition among manufacturers.