Which one of the following topics does microeconomics study?
A)reasons for a fall in the price of orange juice
B)the effect of a rise in the Canadian dollar on Canada's exports
C)effect of interest rates on national economic growth
D)effect of the government budget deficit on employment
E)determination of total production in a country

Question

Quizplus · Accepted Answer

Microeconomics studies the behavior of individual economic agents such as households, firms, and markets. The fall in the price of orange juice is a topic that specifically pertains to the behavior of firms and markets, and thus falls within the scope of microeconomics. The other options, such as the effect of a rise in the Canadian dollar on exports or the effect of government budget deficit on employment, are more macroeconomic in nature.

Which One of the Following Topics Does Microeconomics Study