The Primary Focus of Microeconomics Quiz and Flashcards

What does microeconomics primarily analyze?

What is the focus of macroeconomics?

Which distinction within economics pertains to 'what ought to be'?

In economics, what does the term 'rational economics' primarily refer to?

What does behavioural economics focus on?

What does 'correlation' in statistics usually refer to?

What is a familiar example of dependent phenomena?

Why are correlations considered useful in statistics?

What does an electrical utility's production of less power on a mild day demonstrate?

What is the primary focus of correlation in statistics?

Microeconomics vs Macroeconomics

Microeconomics primarily analyzes individual economic units, such as households, firms, and markets.
Macroeconomics focuses on the economy as a whole, examining aggregates and averages.

Normative Economics

The distinction within economics that pertains to 'what ought to be' is normative economics.

Rational Economics

'Rational economics' primarily refers to the assumption that individuals make decisions based on complete and relevant information, using reason to maximize their satisfaction.

Behavioural Economics

Behavioural economics focuses on how psychological, social, and emotional factors influence economic decisions.

Correlation in Statistics

In statistics, 'correlation' usually refers to the statistical relationship between two or more variables.
A familiar example of dependent phenomena is the relationship between the amount of ice cream sold and the temperature outside.
Correlations are considered useful in statistics because they help identify patterns and relationships between variables.

Correlation in Real-Life Scenarios

An electrical utility's production of less power on a mild day demonstrates a negative correlation between temperature and power consumption.
The primary focus of correlation in statistics is to identify the degree and direction of the relationship between variables.

Test your knowledge of microeconomics with this quiz! Explore the fundamental elements of the economy, including individual agents and markets, their interactions, and the outcomes of those interactions. See how well you grasp the key concepts of microeconomics.