Microeconomics examines:
A)the economic behavior of an entire nation.
B)the economic behavior of individual economic decision units.
C)topics such as national income and inflation.
D)monetary policy.

Question

Quizplus · Accepted Answer

Microeconomics focuses on the study of individual economic agents, such as households and firms, and how they make decisions regarding the allocation of scarce resources. It is concerned with topics such as the determination of prices for goods and services, market structures, and consumer behavior. The other choices, such as A, C, and D, are more closely associated with macroeconomics, which examines the behavior of the economy as a whole. Microeconomics focuses on examining the economic behavior of individual economic decision units, such as consumers and firms, rather than the macroeconomic behaviors of an entire nation. Topics such as national income and inflation fall under the realm of macroeconomics, not microeconomics. Monetary policy is also a macroeconomic policy tool.

Microeconomics Examines