Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.1. the effect of a large government's budget deficit on the economy's price level2. the effect of government regulation on a monopolist's production decisions3. a consumer's optimal choice when buying a flat-screen tv

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Explanation:

1. The effect of a large government's budget deficit on the economy's price level

Macroeconomics. Macroeconomics deals with the study of the aggregate economy and the impacts of fiscal and monetary policies on the economy. Given three levels of economics participants - the consumer, firms, and the government - macroeconomics focuses on the government. Thus, the effect of a large government's budget on the economy's price level will fall under the purview of Macroeconomics.

2. The effect of government regulation on a monopolist's production decisions

Microeconomics. While this tends toward macroeconomics as it considers the effect of government regulation, it aligns more with Microeconomics as the effect is being considered on a specific firm and not the whole economy.

3. A consumer's optimal choice when buying a flat-screen TV

Microeconomics. This focuses on the consumer as an economic participant, and is thus a micro-economic concern.

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