Which of the following best describes the difference between micro and macroeconomics?
A)Macroeconomics deals with bigger,more important issues,while microeconomics deals with the smaller,less significant details.
B)Macroeconomics studies the actions of large firms while microeconomics studies the behavior of small firms and individuals.
C)Macroeconomics is the study of aggregate factors while microeconomics is the study of individuals and individual firms.
D)Macroeconomics studies long-run behavior (one-year or more)while microeconomics studies short-run or immediate behavior.

Question

Quizplus · Accepted Answer

Macroeconomics focuses on analyzing the economy as a whole, including the study of national income, inflation, unemployment, and other aggregate factors. On the other hand, microeconomics is concerned with the behavior and decision-making of individual consumers, households, and businesses. It studies individual markets, pricing, production, and consumption at the micro level. Therefore, option C correctly distinguishes between the two subfields of economics, stating that macroeconomics is the study of aggregate factors, while microeconomics is the study of individuals and individual firms.

Which of the Following Best Describes the Difference Between Micro