Constrained optimization, equilibrium analysis and comparative statistics are the three essential tools of
A) Macroeconomic analysis
B) Microeconomic analysis
C) Equilibrium analysis
D) Industry analysis

Question

Quizplus · Accepted Answer

Constrained optimization, equilibrium analysis and comparative statistics are the three essential tools of microeconomic analysis. These tools are used to analyze how individual consumers and firms make decisions in the market and how these decisions lead to market outcomes. Macroeconomic analysis is concerned with the overall performance of the economy, while industry analysis focuses on specific industries. Equilibrium analysis is a concept used in both microeconomic and macroeconomic analysis, but it is not a tool on its own.

Constrained Optimization, Equilibrium Analysis and Comparative Statistics Are the Three