The study of microeconomic theory focuses on the
A) Structure and performance of individual markets and the operation of the price system.
B) Operation of the entire economy.
C) Role of the banking system in the economy.
D) Interaction of international trade and domestic production of goods and services. Microeconomics studies how the foundation of an economy and individual markets work.

Question

Quizplus · Accepted Answer

Microeconomic theory is concerned with how individual markets and the price system operate. It focuses on the behavior of individual economic agents such as households, firms, and governments, and how they interact in markets to determine prices and quantities of goods and services. It is distinct from macroeconomics, which examines the overall performance of the economy as a whole.

The Study of Microeconomic Theory Focuses on the