Wacky Widget Factory Case Study
Events
The Wacky Widget Factory, a firm, decides to produce 5,000 gadgets instead of 10,000 widgets. This is a microeconomic issue because it deals with an individual firm. The opportunity cost would be 10,000 widgets. Individual firm would be effected.
The U.S. government reduces funding for the Environmental Protection Agency, an agency in charge of regulating and monitoring the level of all pollution in the U.S., by $250 billion to reduce taxes on the wealthiest Americans. This is a macroeconomic issue because it deals with all industries and all pollution. The opportunity cost would be less production and less regulating within the EPA. Society would be effected.
A state reduces taxes on large businesses that move their production
to their state and pays for it by raising taxes on existing residents. This is a microeconomic issue because it deals with just one state. The opportunity cost would be taxing the existing residents. Society would be effected
Local public education funding is reduced and reallocated to improve streets and other infrastructure to attract new business. This is a microeconomic issue because it is dealing with individual businesses. The opportunity cost would be less funding going into public education. Society would be effected
The Federal Aviation Administration (FAA) requires all passengers to submit to increases in security screening, which leads to increased waiting times to increase airline protection This is a macroeconomic issue because it is dealing with all industries and all airlines. The opportunity cost would be it takes longer to get through security. You as an individual would be effected
The Wacky Widget Factory, a firm, decides to produce 5,000 gadgets instead of 10,000 widgets. This is a microeconomic issue because it deals with an individual firm. The opportunity cost would be 10,000 widgets. Individual firm would be effected.
The U.S. government reduces funding for the Environmental Protection Agency, an agency in charge of regulating and monitoring the level of all pollution in the U.S., by $250 billion to reduce taxes on the wealthiest Americans. This is a macroeconomic issue because it deals with all industries and all pollution. The opportunity cost would be less production and less regulating within the EPA. Society would be effected.
A state reduces taxes on large businesses that move their production
to their state and pays for it by raising taxes on existing residents. This is a microeconomic issue because it deals with just one state. The opportunity cost would be taxing the existing residents. Society would be effected
Local public education funding is reduced and reallocated to improve streets and other infrastructure to attract new business. This is a microeconomic issue because it is dealing with individual businesses. The opportunity cost would be less funding going into public education. Society would be effected
The Federal Aviation Administration (FAA) requires all passengers to submit to increases in security screening, which leads to increased waiting times to increase airline protection This is a macroeconomic issue because it is dealing with all industries and all airlines. The opportunity cost would be it takes longer to get through security. You as an individual would be effected