Which of the following is an example of macroeconomics?

• A. The price of a cup of coffee.
• B. The unemployment rate.
• C. A decision by a consumer to buy bread.
• D. The cost of a lunch.

Answer: (B)

Macroeconomics looks at large-scale factors that reflect how the whole economy is performing, such as overall unemployment, inflation, and GDP growth. The unemployment rate fits this idea because it measures the health of the labor market across the entire economy, not just in one specific market or for one individual. It captures broad trends in job availability, wages, and demand for goods and services, which policy makers watch to guide economic policy.

In contrast, the price of a cup of coffee focuses on a single market and a specific good, which is how microeconomics analyzes supply and demand for individual products. A consumer’s decision to buy bread centers on personal preferences and budget constraints for that one item, also micro in scope. The cost of a lunch is another product-level price in a particular market, not an economy-wide indicator.