Which of the following is a microeconomic question?

• A. How does government spending affect national unemployment rates?
• B. How does a consumer decide how much of a product to buy?
• C. What factors determine a country's exchange rate?
• D. What causes inflation in a country's economy?

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the difference between microeconomics and macroeconomics. Microeconomics focuses on individual agents such as consumers, firms, and markets, while macroeconomics looks at the economy as a whole, including aggregate variables like unemployment, inflation, and national income.
2. Step 2: Analyze each question to identify whether it deals with individual decision-making or aggregate economic outcomes. For example, questions about government spending, national unemployment rates, exchange rates, and inflation typically fall under macroeconomics because they involve the economy-wide phenomena.
3. Step 3: Identify the question that focuses on individual behavior or choices. The question 'How does a consumer decide how much of a product to buy?' is about individual consumer decision-making, which is the core subject of microeconomics.
4. Step 4: Confirm that the selected question involves concepts such as consumer preferences, budget constraints, and utility maximization, which are fundamental microeconomic topics.
5. Step 5: Conclude that the microeconomic question is the one about consumer choice, as it deals with individual economic agents rather than aggregate economic indicators.