The branch of economics which studies how households and firms interact in markets is called
A)macroeconomics.
B)microeconomics.
C)positive economics.
D)normative economics.

Question

Quizplus · Accepted Answer

Microeconomics focuses on the behavior of individual households and firms in markets, including how they interact with each other. Macroeconomics, on the other hand, studies the economy as a whole, looking at issues such as inflation, unemployment, and economic growth. Positive economics seeks to describe and explain economic phenomena, while normative economics aims to make value judgments and recommendations about economic policies.

The Branch of Economics Which Studies How Households and Firms