The field of economics that studies the decisions of individuals and firms is called a

Economics Jan 22, 2021

The field of economics that studies the decisions of individuals and firms is called

a. macroeconomics.

b. macroeconomics and microeconomics, depending on the economist you ask.

c. microeconomics.

d. normative economics.

Expert Solution

The field of economics that studies the decisions of individuals and firms is called c. microeconomics.

The field of microeconomics deals with economic factors and decisions associated with individuals, firms and industries. It may take into account factors such as demand, supply, marginal revenue, marginal cost and income. On the other hand, the field of macroeconomics deals with the economic factors and decisions related to a given overall economy. These factors may be unemployment, interest rate, money supply, aggregated demand, fiscal policy, monetary policy, economic boom or economic recession.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote