Q.Classify each statement as belonging to Micro Economics or Macro Economics, with a brief reason:

Ask whether each statement concerns a SINGLE unit or market (Micro) or an economy-wide AGGREGATE (Macro).

1. Micro Economics. This is about the demand for a SINGLE good (coffee) in a SINGLE market, responding to a change in its own price — exactly the individual-market analysis of Micro Economics (Price Theory).
2. Macro Economics. The overall unemployment rate is an AGGREGATE for the whole economy, not any single firm or worker — a textbook Macro Economics variable.
3. Micro Economics. The output decision of a SINGLE firm (one car manufacturer) is an individual-unit decision, the subject matter of Micro Economics. …

Students sometimes classify by whether a government or 'official' body is mentioned, assuming anything involving the government must be Macro. The correct test is the LEVEL of analysis — a single unit/market versus an economy-wide aggregate — not who …