Question

In: Economics

Microeconomics differs from macroeconomics in that microeconomics focuses on: A) the performance of the entire economy....

Microeconomics differs from macroeconomics in that microeconomics focuses on:

A) the performance of the entire economy.

B)issues such as inflation, unemployment and economic growth.

C) the choices made by individuals and the implications of those choices.

D) government policies designed improve the performance of the national economy

Solutions

Expert Solution

Correct option is B.

A. is incorrect because the performance of entire economy is studied under macroeconomics.

B. is incorrect because issues such as inflation, unemployment, and econmic growth are studied for an economy as a whole, thus covered under macroeconmics.

C. is correct because microeconomics focuses on the choices which an individual has to make to fullfill his/her unending needs/wants with the limited means(scarce resources) available.

D. is incorrect because government policies are designed for the economy as a whole and does not focus on each and every individual/unit. Whereas, microeconomics is the study of individual unit.

Rahul Sunny answered 1 year ago
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