Which of the following is an example of a microeconomic statement rather than a macroeconomic statement?

Introduction / Context:
Economics is divided into microeconomics and macroeconomics. Microeconomics studies individual units such as households, firms and specific markets, while macroeconomics focuses on the economy as a whole, including aggregates like total output, overall unemployment and the general price level. Many exam questions test whether you can differentiate between microeconomic and macroeconomic statements by looking at whether the statement is about a specific market or about overall aggregates.

Given Data / Assumptions:

• Option A refers to the price of personal computers, which is a specific product market.
• Option B refers to unemployment rate for the entire labour force.
• Option C refers to real domestic output for the entire economy.
• Option D refers to the general price level for the economy.
• We assume standard textbook definitions of microeconomics and macroeconomics.

Concept / Approach:
Microeconomic statements focus on individual markets, prices and quantities. For example, the price of apples, the demand for tea, or the supply of cars are all micro topics. Macroeconomic statements deal with aggregate variables such as gross domestic product, national income, total employment, inflation and the overall price level. Therefore, a statement about the price of personal computers in their specific market is microeconomic, while statements about national unemployment, total output growth or inflation are macroeconomic.

Step-by-Step Solution:
Step 1: Read each statement and identify whether it is about a specific product market or about the economy as a whole.Step 2: Observe that option A talks about the price of personal computers, a single category of goods.Step 3: Notice that options B, C and D use aggregate terms like unemployment of the labour force, real domestic output and general price level, which clearly refer to macroeconomic aggregates.Step 4: Conclude that only option A is a microeconomic statement, and select it as the correct answer.

Verification / Alternative check:
A practical way to check your reasoning is to imagine the typical chapters where these topics appear in a textbook. The chapter on consumer choice, demand and supply in a particular market will discuss individual goods such as personal computers and their prices, which belongs to microeconomics. In contrast, chapters on national income accounting, inflation and unemployment belong to macroeconomics and discuss overall output, general price level and economy wide joblessness. Matching the options to these chapters confirms that option A is micro and the others are macro.

Why Other Options Are Wrong:
Option B is wrong as a microeconomic statement because it refers to unemployment for the entire labour force, which is a classic macroeconomic indicator. Option C is incorrect because real domestic output is another name for real GDP, an aggregate macro variable. Option D is also incorrect as a micro statement because it talks about the general price level, which is an economy wide concept used to measure inflation. These three options are clearly macroeconomic, not microeconomic.

Common Pitfalls:
Students sometimes think that any statement involving percentages or time periods must be macroeconomic, which is not true. A percentage change in the price of a single good is still micro. Another pitfall is to focus only on the word price and ignore whether it is the price of a single good or the general price level in the economy. To avoid such mistakes, always ask yourself whether the statement is about a specific market or about the economy as a whole. If it is about a specific market, it is microeconomics; if it is about aggregates like total output or overall unemployment, it is macroeconomics.

Final Answer:
The statement that the price of personal computers declined last year is a microeconomic statement.