(Please explain why this statement is WRONG). NOTE: The assignemnt is to determi
ID: 1219129 • Letter: #
Question
(Please explain why this statement is WRONG).
NOTE: The assignemnt is to determine Microeconomics from Macroeconomics. This indivudual belives this statement is MACROECOMICS. I personally diagree and think MICROECONOMICS.
(STATEMENT) 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. ANSWER- Macroeconomics – because a move like this will affect society as a whole and it deals with all of Americans instead of households and firms. The opportunity cost of this event will make taxation on the wealthy lighter but allow more pollution in our country, so better tax breaks but more pollution
Explanation / Answer
Ans: Yes, we can say that this statement is Micro economics because this situation deals with a group of people i.e wealthiest Americans not the whole society. But if we see the overall effect, it effects the whole country(in term of pollution) so this case is concerned with macroeconomics.
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