Macroeconomics differs from microeconomics in that
A) the concept of scarcity applies to the latter but does not apply to the former.
B) the latter studies individual markets while the former studies groups of markets,including the whole economy.
C) rational decisions are relevant to the former but not the latter.
D) the former is the study of how people make choices under conditions of scarcity while the latter is concerned with the results of those choices for society.
E) the former explains such concepts as how prices are determined in markets while the latter explains the overall price level.

Question

Quizplus · Accepted Answer

Microeconomics focuses on individual markets and specific economic agents, such as households and firms, while macroeconomics studies the overall performance of the economy, including the measurement of aggregate variables like GDP and inflation rate.

Macroeconomics Differs from Microeconomics in That