The basic difference between microeconomics and macroeconomics is that
A) microeconomics is concerned with the domestic economy, while macroeconomics is concerned only with the international economy
B) microeconomics examines the individual units of the economy, while macroeconomics studies the whole economy
C) microeconomics studies the actions of households, while macroeconomics studies the actions of business firms
D) microeconomics studies the economy in terms of private individuals and firms, while macroeconomics includes the effect of government
E) microeconomics examines the whole economy, while macroeconomics studies the individual units of the economy

Question

Quizplus · Accepted Answer

Microeconomics focuses on the actions and behavior of individual units, such as consumers and businesses, and how they make decisions regarding the allocation of resources. Macroeconomics, on the other hand, looks at the economy as a whole, including total output, total employment, the overall price level, and the rate of economic growth.

The Basic Difference Between Microeconomics and Macroeconomics Is That