1. For each of the following, state whether the question better fits the description of a microe-

conomics question or a macroeconomics question. (Note: You are not answering these questions, you

are just sorting them between micro/macro questions).

(a) How does the lack of face-to-face classes impact a student's decision about how many courses to

take?

(b) How does a restaurant manager decide how many servers to have working at one time while restau-

rants have reduced capacity requirements?

(c) How will another round of stimulus checks impact inflation in the United States?

(d) How long will it take for the unemployment rate in the US to fall back below 10%?

(e) Will household demand for hand sanitizer return to pre-Covid levels next year, or will a new

emphasis on hygiene keep demand for hand sanitizer high?

2. The concept of division and specialization of labor states that when workers focus on certain

tasks they will produce more than if the same number of workers were to try and produce entire goods

themselves. Why is this the case? Adam Smith explained three reasons why this is so. List them and

explain the rationale behind them.