Briefly explain 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
b. The effect of higher income taxes on the total amount of consumer spending
c. The reasons for the economies of East Asian countries growing faster than the economies of sub-Saharan African countries
d. The reasons for low rates of profit in the airline industry

Micro; Macro; Macro; Micro.

Explanation:

Economics is divided into two main segments which are microeconomics and macroeconomics. It should be noted that microeconomics deals with study of individuals and the firms while macroeconomics studies the while economy and looks at decisions that are made by governments and countries.

a. The effect of higher cigarette taxes on the quantity of cigarettes sold.

This is a microeconomic issue as one entity is being discussed which is cigarette and the issue is related to just one particular industry.

b. The effect of higher income taxes on the total amount of consumer spending.

This is a macroeconomic issue as taxes affects the whole economy. The whole nation is affected by this decision.

c. The reasons for the economies of East Asian countries growing faster than the economies of sub-Saharan African countries.

This is a macroeconomic issue as it relates to different countries.

d. The reasons for low rates of profit in the airline industry.

This is a microeconomic issue as the issue affects just the airline industry.

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