Microeconomics is defined as that part of economic analysis that
A) studies the behavior of the economy as a whole.
B) includes the problems of inflation and unemployment.
C) studies individual decision making by households and firms.
D) concerns aggregate production and consumption.

Question

Quizplus · Accepted Answer

Microeconomics specifically studies the decision making of individual households and firms, not the behavior of the economy as a whole (choice A) or aggregate production and consumption (choice D). While inflation and unemployment may be factors that affect microeconomic decisions, they are not the primary focus of microeconomics (choice B).

Microeconomics Is Defined as That Part of Economic Analysis That