Questions and Answers
Which branch of economics studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources?
Microeconomics
What is the primary focus of microeconomics?
Analyzing market mechanisms for establishing relative prices
In which branch of economics do we study the sum total of economic activity and national policies relating to growth, inflation, and unemployment?
Macroeconomics
What does microeconomics analyze when considering free markets?
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Which type of theories has much of modern macroeconomics been built upon?
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According to microeconomic theory, what does rationality mean for an individual?
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What technical assumption is needed to ensure the existence of a utility function in microeconomic theory?
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What guarantees the existence of a solution to the utility maximization problem according to economists?
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What is the heart of consumer theory in microeconomics?
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Which model of microeconomic theory takes consumer choice as the primitive?
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