Microeconomics is the study of A

Economics Jan 22, 2021

Microeconomics is the study of

A. the behavior of the economy as a whole.

B. how individuals and firms make decisions.

C. how rising prices affect the level of employment in the economy.

D. the effect that money has on the economic system.

Expert Solution

Answer: B

Microeconomics is the study of economics at the industry level or lower. Answers A, C, and D all are part of macroeconomics since they describe events that affect the overall economy. Microeconomics seeks to understand the economy on a smaller scale such as what happens if the price of an input rises for a given good.

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