00:01
So for this question, we're thinking about five different economic events and whether they are best represented by micro or macroeconomics.
00:08
As a brief refresher, microeconomics is the study of economics where only a few markets that comprise a relatively small share of the economy are concerned, while macroeconomics is concerned with the behavior of economies as a whole or very large markets that affect every part of the economy.
00:25
So the first thing is oil to steel.
00:29
We have higher oil prices and we're thinking about their production of steel.
00:33
While oil is a very common resource used throughout the economy, the way that oil prices impact the steel market is an example of microeconomics.
00:44
This would be macroeconomics if we were thinking perhaps about the effect of oil on the economy as a whole.
00:50
But when we're thinking about the impact of oil on just one market, the market for steel, that's a single.
00:55
Market, we're thinking micro.
00:58
B, the increased demand in the last 15 years for exotic dietary supplements.
01:02
This is very straightforward.
01:03
Dietary supplements are very small part of the economy.
01:06
This is only one market, so it's micro.
01:10
C, the surge in aggregate economic activity that hit much of asia late in the early 2000s...