Indicate whether each of the following is primarily a microeconomic issue or a macroeconomic issue. a. The effect of higher cigarette taxes on the quantity of cigarettes sold. This is a Y issue. Macroeconomics is O A. the study of rms as a group with special emphasis on how these rms interact with one another. 0 B. the study of "large" (greater than $100,000} economic transactions in the economy. 0 C. the study of the economy as a whole, including topics such as ination, unemployment, and economic growth. 0 D. the study of how households and rms make choices, how they interact in markets, and how the government attempts to inuence their choices. Microeconomics is the study of O A. rms as individual units excluding how these rms interact with one another. 0 B. the economy as a whole, including topics such as ination, unemployment, and economic growth. 0 C. how households and rms make choices, how they interact in markets, and how the government attempts to inuence their choices. 0 D. "small" (less than $100,000) economic transactions in the economy. Which of the following best describes scarcity? O A. Unlimited wants exceed the limited resources available. O B. Markets cannot properly allocate resources. O C. Prices of goods are very high. O D. Wants cannot be fulfilled and thus all goods must be rationed. Scarcity is central to the study of economics because it implies that O A. society must make decisions at the margin. O B. every choice involves a trade-off (also called an opportunity cost). O C. economic agents are rational. O D. wants are unlimited.The three economic questions that every society must answer are O A. What goods will be produced, how will they be produced, and who will receive the goods? O B. What are the prices of goods, how are they determined, and who will pay for them? O C. What kind of government will the society have, how will it be run, and who will run it? O D. What economic system will be used, how will it be implemented, and who will make market decisions?Evaluate the following argument: "Adam Smith's analysis is based on a fundamental aw: He assumes that people are motivated by self-interest. But this isn't true. I'm not selsh, and most people I know aren't selsh." O A. This statement correctly identies how Smith's analysis ignored charitable acts of giving and benevolence. O B. This statement is based on the misconception that Smith's analysis applies to every aspect of life. 0 C. This statement is based on the misconception that following your self-interest and being selsh are the same thing. 0 D. This statement is based on the misconception that Smith's analysis provides no role for government guidance. 0 E. This statement is based on the misconception that Smith's analysis applies to rms and households. is concerned with what is, and is concerned with what ought to be. Economics is about which measures the costs and benefits of different courses of action