Which of the following statements correctly highlights the difference between microeconomics and macroeconomics?
A) Microeconomics is descriptive, whereas macroeconomics is advisory.
B) Microeconomics primarily deals with positive analysis, whereas macroeconomics primarily deals with normative analysis.
C) Microeconomics deals with a small part of the economy, whereas macroeconomics deals with aggregate economic performance.
D) Microeconomics describes what economic agents actually do, whereas macroeconomics describes what economic agents ought to do.

Question

Quizplus · Accepted Answer

Microeconomics deals with individual economic units such as consumers, firms, and industries, whereas macroeconomics deals with the aggregate performance of the entire economy, including such factors as inflation, unemployment, and economic growth. Therefore choice C correctly highlights the difference between the two fields.

Option A is incorrect as both microeconomics and macroeconomics can be descriptive or advisory depending on the context.

Option B is incorrect as both microeconomics and macroeconomics involve positive and normative analysis.

Option D is incorrect as both microeconomics and macroeconomics describe what economic agents actually do in the economy.

Which of the Following Statements Correctly Highlights the Difference Between