Microeconomics is the study of:
A) the effect of an increase in money supply on interest rates.
B) the effect of an increase in interest rates on the level of investment in an economy.
C) the government's role as a distributor in an economy.
D) the economic behavior of individual decision makers.
E) the government's role as a producer in an economy.

Question

Quizplus · Accepted Answer

Microeconomics focuses on the economic behavior and decision making of individual agents such as households, firms, and markets. It examines how they allocate scarce resources and how they interact with each other to determine the prices and quantities of goods and services consumed and produced. A, B, and E are more related to macroeconomics, which focuses on aggregate economic variables such as national output, inflation, and unemployment, and the role of government in managing them. C is also more related to public finance or welfare economics, which deals with the optimal allocation of public goods and the distribution of income and wealth.

Microeconomics Is the Study Of