Microeconomics involves the analysis of smaller,less developed economies while macroeconomics is concerned with the analysis of larger developed economies.

Question

Quizplus · Accepted Answer

The statement is false. Microeconomics is concerned with individual economic units such as households and firms, while macroeconomics focuses on the economy as a whole, typically on a national or even global scale. The level of development of the economy is not a factor in determining whether the analysis is micro or macro.

Microeconomics Involves the Analysis of Smaller,less Developed Economies While Macroeconomics