The basic difference between macroeconomics and microeconomics is:

A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.

B. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms.

C. microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.

D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

Question

Business

Anabel Morris

10 May, 17:20

The basic difference between macroeconomics and microeconomics is:

A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.

B. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms.

C. microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.

D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

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Answers (1)

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Washington · Answer 1

The correct answer is option C.

Explanation:

Microeconomics is the branch of economics that studies the behavior of individual economic agents such as a single firm or a single consumer. For instance, it deals with variables such as demand for a single consumer or a supply from a single firm.

Macroeconomics is that branch of economics that studies the entire economy as a whole. It deals with variables such as inflation, unemployment rate, etc.