Microeconomics Quiz

Microeconomics focuses on the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

Microeconomics focuses on individual markets, sectors, or industries, while macroeconomics focuses on the sum total of economic activity and national policies relating to growth, inflation, and unemployment.

One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses.

<p>Microeconomics shows conditions under which free markets lead to desirable allocations, as well as analyzes market failure.</p> Signup and view all the answers

<p>Macroeconomics focuses on the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment, and with national policies relating to these issues.</p> Signup and view all the answers