Classify the following topics as relating to microeconomics or macroeconomics. Topic Microeconomics Macroeconomics
The effect of rent control on the housing market.
The effect of an increase in income tax on national income.
A firm's decision on which production method to use.
The effect of externality on the quantity produced by the market.
A student's decision about how to allocate his time between studying two subjects.

Answer and Explanation:

Microeconomics is the study of the individual regarding the decision related to market demand and supply

While the macroeconomics would deals with the country like gross domestic product, national income etc

Based on this, the classification is as follows:

1. Microeconomics

2. Macroeconomics

3. Microeconomics

4. Microeconomics

5. Microeconomics

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.